21/11/2008 (The Star Online) - OIL is the lifeblood of the transport sector the world over. Malaysia’s transport sector too is heavily dependent on oil as 95% of the fuel used is petrol and diesel.

Our oil supply, however, is fast depleting, with an estimated 19-year reserve left if it is wisely put to use, and if there is no new discovery.

Also of some concern to the Government is the need to check the emission of greenhouse gases (GHG), a by-product of burning fossil fuels, which has been linked irrefutably to global warming and climate change.

There is now a growing awareness that the transport sector is a major air polluter, besides coal-fired power plants.

To address these concerns, the Government is diversifying the energy mix in the transport sector.

The Government should be commended for introducing the palm-based methyl esther (B5) to be used by its fleet of diesel vehicles from February as an alternative to petroleum.

Usually a small portion of biofuel - ethanol or methyl ester - is blended with petrol or diesel so as to minimise costly engine modification.

Biofuel holds the promise of secure and almost unlimited supply and is considered environmental-friendly as its production and burning generate less GHG than that from fossil fuels.

Besides being a cleaner fuel, biofuel can be replenished.

In March 2006, the Government announced the National Biofuel Policy which spelt out, inter alia, the proposed mandatory use of envo diesel, a blend of 5% processed palm oil (that is, cooking oil) and 95% diesel, in all diesel-powered vehicles.

With methyl ester replacing envo diesel as biofuel, it has addressed the reluctance of the automotive industry to endorse the use of envo diesel (Malaysia’s version of B5 biodiesel previously) due to engine warranty problems.

The motor industry recognises only the internationally accepted definition of biodiesel B5 which involves blending 5% methyl ester - derived from processed palm oil which has undergone transesterification - with 95% diesel.

Production of methyl ester costs about one-third more than palm olein.

The Government must also set targets and a time-frame for the partial replacement of diesel with biodiesel to enable the public and the palm oil and biodiesel industries to adjust to the new policy and move forward quickly.

Steps should also be taken to hasten the passing of the National Biofuel Act which will provide the regulatory framework for implementing the national biofuel policy.

It is hoped that the Act will provide, among other things, incentives to encourage the purchase of more diesel-powered passenger vehicles as they deliver 30% to 40% more kilometres per litre of fuel compared with petrol-powered vehicles.