30/03/2013 (Malay Mail) - To support the implementation of the B10 biodiesel programme nationwide, a private sector-led initiative Biodiesel Malaysia Sdn Bhd (BMSB) will be established, led by Felda Global Ventures Holdings and Sime Darby Bhd.

The B10 is blending of 10% palm based methyl ester with 95% petroleum diesel -- more environmentally-friendly compared to conventional diesel. The B10 will be available for industrial operations and transport purposes mid-2014.

The company, expected to commence operation in the second quarter 2013, will offer equity participation to other companies involved in the oil palm and biodiesel sector, said Minister of Plantation Industries and Commodities Tan Sri Bernard Dompok.

He added that the local biodiesel industry needs more exposure and the government is engaging more players to get involved.

The company will support the local biodiesel market before embarking on the Europe and US markets.

With the push of the B10 from the existing B5, the domestic utilisation of palm oil for biofuel purposes is expected to increase to one million tonnes from half a million tonnes a year.

In the long run, it will push the crude palm oil prices upwards with increased job opportunities through the increased operations, said Dompok.

To facilitate the implementation of the B10, the government will allocate an annual subsidy of RM413.6 million up to RM1.1 billion to cover the blending process the palm oil and petroleum diesel.

The government will also work with Sirim Bhd and automotive manufacturers to accelerate the process of acquiring engine warranties.