KUALA LUMPUR, July 10 (Bernama) -- The Government has identified Petroliam Nasional Bhd (Petronas) to help channel Malaysia's first-of-its-kind biofuel, envo diesel, said Plantation, Industries and Commodities Ministry Secretary-General, Datuk Dr Michael Dosim Lunjew.

He said the Government would also be seeking cooperation from other oil companies here to help in the sale.

"We will try to seek their cooperation to have one or two petrol pumps to supply envo diesel by year-end. We will provide the facility for the public to try," he said.

Dr Michael told this to reporters after launching Malaysian Palm Oil Board's 26th Palm Oil Familiarisation Programme here Monday.

Envo diesel is environment-friendly and can be used in all diesel engines without any modification, static engines for industrial and power generation.

Envo diesel, which was launched in March 21, 2006, is blended with 5 percent processed palm oil and 95 percent petroleum diesel.

"There is not much difference in the pricing between envo diesel and normal diesel. But during the trial period, we are looking at the possibility of giving discounts," he said when asked on the pricing.

He said the Government would be able to save on petrol subsidy with the use of envo diesel.

The Defence Ministry, Works Ministry and Kuala Lumpur City Hall were among the first to use the envo diesel, he said.

"The Government has received positive feedback from them," he said.

On the Biofuel Act, Dr Michael said: "The key thing is to get Parliament to pass it. Although our initial target was 2007, we will try to get it done by year-end."

The Act would made it mandatory for local diesel-powered transportation sector, industries and passenger vehicles to use biofuel.

He said the Government was seriously looking into engine warranty by diesel engine manufacturers and currently was working with Petronas on the matter.

"Once the result is ready, we will then decide on the implementation date," he said.

-- BERNAMA