Malaysian biodiesel mandate increase may impact exports
The Malaysian government said it would increase its B10 mandate to B15 without giving a timeline. It will move first from B10 to B12, which is expected to boost biodiesel consumption by 130kt/yr, later moving to B15, likely raising consumption by another 204kt/yr. The Malaysian Palm Oil Board said that palm oil exports are likely to be only marginally impacted by the policy revision (The Star). But if biodiesel production is not raised sufficiently, then Malaysian biodiesel exports may be curtailed. Malaysia exported 817kt of biodiesel in 2025, mainly to Europe. Against a backdrop of war in the Middle East, the Malaysia Biodiesel Producers Association previously reported that shortages of methanol, which is used in the production of biodiesel, caused by the war in the Middle East may result in reduced overseas shipments of the fuel.