Malaysia to provide more incentives to biodiesel producers

Plantation Industries and Commodities Minister Datuk Peter Chin Fah Kui Chin said the ministry was in talks with the Treasury to provide more incentives to biodiesel producers in Malaysia to ensure that the biodiesel business in Malaysia remains viable. The B5 blend program, which has been effective since February 1, involves the blending of 5% biodiesel with 95% fossil fuel and will be carried out in stages, starting with government vehicles. Under the program, all diesel vehicles in the country must use the B5 blend by 2010. The first phase of the B5 program has covered most of the Klang Valley involving government vehicles owned by City Hall and the Defence Ministry. Next is Kota Kinabalu which has a huge base of diesel vehicles. (March 25, 2009)