22/3/06 PUTRAJAYA (NSTP)  -  Datuk Seri Abdullah Ahmad Badawi launched a made-in-Malaysia biodiesel yesterday that was expected to change the pattern of future fuel usage by Malaysians.


The Prime Minister said more were expected to use "Envo Diesel" with Proton’s plan to develop a diesel engine.

"I hope this (biodiesel) will also spur a change in the mindset of society on the potential of the country’s palm oil industry," he said.

Abdullah said Envo Diesel would support the price of palm oil.

 Petronas Dagangan will market the fuel at selected petrol stations when it becomes commercially available as early as next year.

Tan Chong Industries Sdn Bhd will certify its Nissan diesel engines as fit for biodiesel use.

Envo Diesel, consisting of five per cent palm oil and 95 per cent diesel, will be sold at RM1.58 a litre, the same as petroleum diesel.

"The Government hopes to work with car makers and petroleum companies to take palm oil-based biodiesel to a higher level such as its use in factories and by fishermen."

Abdullah was speaking after pumping "Envo Diesel" into four army trucks which were part of 100 government-owned vehicles to use biodiesel.

The fleet will be used by City Hall, Selangor Public Works Department and the Plantation Industries and Commodities Ministry.

Abdullah hoped that other oil companies would emulate Petronas’ move to sell palm oil-based biodiesel.

He said the Government had issued seven licences to companies interested in building biodiesel plants.

Three plants will be ready in 12 months at a combined cost and capacity of RM120 million and 180,000 tonnes respectively.

Malaysia announced guidelines to its biodiesel policy last August. These cover legislation and industry incentives.

Malaysia expects to produce up to 500,000 tonnes of biodiesel to reduce its dependence on fossil fuel.