Malaysia launches mandate that all diesel fuel sold contain 5% biodiesel blend by Nov. 1, resulting in demand for about 200,000 tons/year of biodiesel
June 2, 2011
– Mission NewEnergy Limited (Nasdaq:MNEL - News) (ASX:MBT.ax - News), is pleased to announce that yesterday, the Malaysian government officially launched the much-awaited B5 PALM OIL BIODIESEL blending mandate.
“Mission has the largest biodiesel capacity in Malaysia and is well-poised to supply the B5 requirements,” said Nathan Mahalingam, Group CEO of Mission NewEnergy Limited, adding “We are finalizing documentation and logistics with industry participants and anticipate that we will be commencing supplies in July 2011.”
The Malaysian Minister for Plantation Industries & Primary Commodities at the federal capital of Putra Jaya, officially declared that under this mandate all diesel sold will contain 5% biodiesel. Implementation has already commenced with retail stations in Putra Jaya and will reach full compliance among all retail stations by November 1st, 2011, resulting in approximately 200,000 tons of biodiesel demand per annum. Once fully implemented on a national scale, demand will increase to 500,000 tons per year.
Municipalities within the central region will launch on a sequential basis beginning with Malacca on July 1st, then Negeri Sembilan, Kuala Lumpur, and Selangor.
Through the Malaysian Palm Oil Board, the government of Malaysia has allocated a sum of Malaysian Ringgit 43.1 million to finance the development of in-line blending facilities at six petroleum depots in the Central Region. The facilities are owned by five oil companies, namely Petronas, Shell, Esso, Chevron and Boustead Petroleum Marketing.
The government has fixed the supply price of biodiesel to the oil companies, which is linked to the monthly average RBD palm oil price, and the price of B5 at the pump will be similar to the retail price of normal diesel, which is currently Malaysian Ringgit 1.80 per litre.
About Mission NewEnergy
Mission NewEnergy Limited is a global provider of sustainable, renewable energy. Operating in Asia, India, Australia, Europe and North America, Mission NewEnergy is an integrated biodiesel producer and one of the world’s largest Jatropha plantation companies producing 105 million gallons of biodiesel with over 194,000 acres of plantation representing a sustainable non-edible oil supply of over 22 million barrels and growing. Jatropha Curcas is an inedible biodiesel feedstock cultivated by Mission’s contract farmers on arid, marginal lands. By realizing the Jatropha by-product value, Mission is working