08/10/2010 (Biofuels International) - The Malaysian Palm Oil Board (MPOB) has allocated RM1 million (€231,260) to Petronas, Shell, BHP, ExxonMobil and Chevron to set up infrastructure for B5 biodiesel blending facilities, ahead of the introduction of the mandate next year.

The incentive comes as the government aims to fully implement a B5 mandate by mid 2011, a requirement which was supposed to have been put in place by January this year.

Tan Sri Bernard Dompok, plantation industries and commodities minister, said: ‘We are on target for the B5 biodiesel implementation by June 2011.’

According to Dompok, Malaysia is close to meeting its palm oil production target of 17.8 million tonnes this year. ‘I think the next three months will be crucial as all our harvests will start to come in,’ he said.