07/06/2016 (Bernama) - The government's decision to introduce B7 biodiesel for the industrial sector and to increase the blend for the transport sector to B10 is seen as a catalyst for the revival of the nation's biodiesel industry, says Felda Global Ventures Holdings Bhd (FGV).

Its Group President and Chief Executive Officer Datuk Zakaria Arshad said the biodiesel industry is not currently competitive due to the low world crude oil prices and a high dependency on the government mandate to increase its demand.

"With the implementation of both new mandates, FGV is expecting a minimum 40 per cent increase in local biodiesel demand," he said in a statement today.

Zakaria said higher biodiesel consumption will reduce crude palm oil dumping and this will help stabilise prices in the long term.

"Since 2015, FGV has implemented B30 for internal use in stages in an effort to increase the sustainability of its operations and to prove the potential of biodiesel as a sustainable fuel alternative," added Zakaria.