STATUS OF BIODIESEL IMPLEMENTATION IN MALAYSIA AND BIODIESEL SPECIFICATIONS

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Guidelines toward High Biodiesel Blend Diesel (eg B20) Specification in the APEC Region, Honolulu, Hawaii, USA. 19 March 2018 STATUS OF BIODIESEL IMPLEMENTATION IN MALAYSIA AND BIODIESEL SPECIFICATIONS Harrison Lau Lik Nang, PhD Group Leader of MPOB Biodiesel Working Group Group Leader of Biodiesel Technology

Malaysian Palm Oil Board (MPOB) Ministry of Plantation Industries and Commodities Incorporated through Act of Parliament R&D 1 May 2000 Enforcement & Licensing Pioneering research and development, providing scientific and technological infrastructure PORIM PORLA To enhance the well-being of the Malaysian oil palm industry through research, development and excellent services & enforcement

Renewable Energy Policy National Renewable Energy Policy and Action Plan (2009) Naitonal Biofuel Policy (2006)

Source: SEDA

National Biofuel Policy The National Biofuel Policy launched in March 2006. Five (5) strategic thrusts :- Thrust 1: Biofuel for Transport Thrust 2: Biofuel for Industry Thrust 3: Biofuel Technologies Thrust 4: Biofuel for Export Thrust 5: Biofuel for Cleaner Environment

Biodiesel in Malaysia Lab scale R&D 1982 Pilot plant built and commissioned 1985 Produces palm biodiesel for engine testing and market seeding Preliminary Field Trial (July 1984 May 1985) : 8 taxis Exhaustive Field Trial (Phase I): 1986-1989 : 31 diesel engines of different makes Exhaustive Field Trial (Phase II): 1990 1994: 36 buses Fully established palm biodiesel as diesel substitute in 1995 MPOB Palm Biodiesel Pilot Plant (3,000 TPA)

Palm Biodiesel and Phytonutrients Plants Built using MPOB Technologies (A) Biodiesel Plants in Malaysia 8 plants Normal Grade Palm Biodiesel Plant (Pour Point 12 to 18 deg. C) Johor, Malaysia Selangor, Malaysia Johor, Malaysia Selangor, Malaysia (2006) (2008) (2008) (2009) Winter Grade Palm Biodiesel Plant (Pour Point 0 to -21 deg. C) Sarawak, Malaysia (2014) Johor, Malaysia (2006) Selangor, Malaysia (2007) (B) Biodiesel Plants Overseas 4 plants Normal Grade Palm Biodiesel Plant (Pour Point 12 to 18 deg. C) Selangor, Malaysia (2008) (C) Phytonutrients Plants in Malaysia 2 plants South Korea (2007) Thailand (2008) Thailand (2015) Colombia (2015) Johor, Malaysia (2009) Sarawak, Malaysia (2016)

Beginning of biodiesel industry: Launching of The World First Integrated Palm Biodiesel Plant (15 August 2005)

The government funded the construction of biodiesel In-line blending facilities at all petroleum depots in Malaysia (2011-2015) Unloading area Inline blending system PME storage tanks Biodiesel discharge pumps

Biodiesel Mandates in Malaysia Implementation Date June October 2011 % of Blending B5 State Involved Putrajaya, Selangor, Kuala Lumpur, Negeri Sembilan and Melaka July 2013 B5 Johor October 2013 B5 Penang, Kedah, Perak and Perlis January 2014 B5 Pahang, Kelantan and Terengganu November December 2014 January 2015 B7 B7 Whole Peninsular Malaysia Nationwide (Including Sarawak, Sabah and Labuan) Sector Transportation and other subsidised sector

Malaysian Biodiesel Plants and Capacity (2017) Status No. of Plants Biodiesel Production Capacity (Tonnes/Year) Commercial Production* 22 2,678,000 Not in commercial production** 9 675,740 Note: * On / off production. Total 31 3,353,740 ** Biodiesel plants which have completed but yet to commence production, and also includes those licensees in other stages and still valid under the Biofuel Industry Act, MPIC.

Malaysian Biodiesel (Production, Exports and Export Earnings) Year Biodiesel Production (Tonnes) Biodiesel Exports (Tonnes) Biodiesel Export Earnings (RM Million) June - Dec 2006 54,981 47,986 120.89 2007 129,706 95,013 253.20 2008 171,555 182,108 610.70 2009 222,217 227,457 605.75 2010 117,173 89,609 266.53 2011 173,220 49,999 179.72 2012 249,213 28,983 98.44 2013 472,129 175,032 502.61 2014 602,334 87,356 257.37 2015 673,532 178,942 483.57 2016 500,833 83,581 247.70 2017 720,410 235,291 777.66

No. Malaysian Biodiesel Industry Capacity Utilization (2017) Subjects 1. No. of plants in operation 16 2. Total production capacity (tonnes/year) 3. Total biodiesel production in 2017 (tonnes) 4. Biodiesel production capacity utilisation (%) 2,060,000 720,410 35 Note : Total no. of established biodiesel plants as end December 2017 was 31 (3.35 mil. tonnes/year of production capacity).

Cabinet Decision on Implementation of B10 for Transportation Sector (June 2016) Exemption for retail stations at highlands to continue supplying B7 Exemption for Euro 5 diesel to be blended with 7% biodiesel Currently there are about 10% of retail stations in Malaysia are selling both Euro 2M (B7) and Euro 5 diesel (B7). 18

Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan RM/Tonne Price Differences Between CPO and Brent Crude Oil (January 2011 - February 2018) USD/Barrel 4,000 B5 B7 140 130 3,500 120 3,000 110 100 2,500 2,000 Spread between CPO and Brent Crude Oil prices narrowed. 90 80 70 1,500 1,000 Brent Crude Oil (USD/Tonne) Brent Crude Oil (RM/Tonne) CPO (RM/Tonne) February 2018 CPO @ RM2,488.00/Tonne VS Brent Crude Oil @ USD65.12/Barrel @ RM1,907.10/Tonne 60 50 40 500 30 20-10 2011 2012 2013 2014 2015 2016 2017 2018

Malaysian Standard of Palm Methyl Ester (MS 2008) The first national PME standard published in 2008 Developed based on EN 14214 Adopted both ASTM and EN / ISO standard as test methods 1 st revision published in 2014 Major modification in this revision is as follows: Deletion of the requirement on carbon residue An increase in oxidation stability requirement from 6 h minimum to 10 h minimum A decrease in the monoglycerides content from 0.8 % (m/m) to 0.7 % (m/m) A decrease in phosphorus content from 10ppm to 4 ppm

MS 2008:2014

MS 2008:2014

MS 123:2014 Standard Revision on Diesel Fuel Part 1: Euro2M Major modification in this revision is as follows: a) provision is made for a maximum of 7 % (v/v) of palm methyl ester (PME) to be included in diesel fuel.

MS123:2014 (Part 1)

MPOB B10/B20 Trial Projects B10 Peugeot Car B10 & B20 MPOB Vehicles B10 with Alam Flora B10 for DBKL vehicles Transfer of skid tank to Alam Flora Transfer station, Taman Beringin for the use of extension B10 trial project for 10 trucks

B10 / B20 MPOB Vehicles (since 2013): Breakdown of brand of vehicles in B10 Project Model Type No. of Vehicles Engine Maker Mitsubishi 4 wheel drive 5 Japan Ford 4 wheel drive 3 USA Toyota 4 wheel drive 9 Japan Hyundai 4 wheel drive 1 Japan Ssangyong 4 wheel drive 1 Korea Mercedes Benz Passenger 1 Germany Peugeot Passenger 5 Germany Mazda 6 (2017) Passenger 1 Japan Total 26

List of 50 KL City Hall Diesel Vehicles Involved in B10 Programme (2014)

Vehicle idling and drivability test at Malaysia highlands using B10 Conducted one month B10 test at Cameron Highlands in Oct 2016 Vehicle used was Peugeot 508 GT with a 2.2L Euro5 specification Everyday 6 am, vehicle started and driven for 50km around Cameron Highland. Once completed, vehicle will be parked at designated outdoor parking overnight For every 10 km travelled, B10 fuel sample will be taken at fuel line before the fuel filter. Fuel temperature will be measured Vehicle overnight idling test for 3 days were also conducted

Temperature ⁰C 30 28 26 24 22 20 18 16 14 12 10 Ambient Temperature at Cameron Highlands Time Time 11-Oct 12-Oct 13-Oct 14-Oct 15-Oct 16-Oct 18-Oct 19-Oct 20-Oct 21-Oct 22-Oct 23-Oct 25-Oct 26-Oct 27-Oct 28-Oct 29-Oct 30-Oct 1-Nov 2-Nov 3-Nov 4-Nov 5-Nov 6-Nov 8-Nov

Temperature ⁰C 45 40 B10 Fuel Temperature vs Time (Soaking overnight and everyday 50km driving test) 14-Oct 15-Oct 16-Oct 17-Oct 18-Oct 19-Oct 20-Oct 22-Oct 23-Oct 24-Oct 25-Oct 26-Oct 27-Oct 28-Oct 29-Oct 30-Oct 31-Oct 1-Nov 2-Nov 3-Nov 4-Nov 5-Nov 6-Nov 7-Nov 8-Nov 9-Nov Trendline 35 30 25 20 15 6.00 6.12 6.24 6.36 6.48 7.00 7.12 7.24 7.36 Time (am)

Temperature ⁰C B10 Fuel Tempeture vs Time (Overnight Vehicle Idling Test 2 hours engine operation) 40 35 30 25 20 15 10 5 13-Oct 12-Nov 13-Nov Trendline 0 6.00 6.20 6.30 6.45 6.55 7.10 7.20 7.30 7.45 7.55 8.10 Time (am)

CFPP ( C) Effect on CFPP of blended fuel vs diesel 20 B100 CFPP = 12-15 ⁰ C 15 10 5 Diesel A CFPP = 9 ⁰ C 0 Diesel B CFPP = 2 ⁰ C 1 2 3 4 5 6 7 8 9 10-5 Diesel C CFPP = - 4 ⁰ C -10-15 B10 Sample

Findings The vehicle had no problem starting throughout the whole duration of the test The lowest ambient temperature recorded was 16 C (6am) The lowest fuel temperature recorded was 17 C Fuel temperature increased by 2 C after driving for 10 minutes (4 7km) The highest fuel temperature recorded after driving 50km was 43 C The highest ambient temperature recorded was 26 C (2 3pm) CFPP of diesel should be a good indicator for determining cold temperature operability of biodiesel blended fuel up to B10

Conclusion Malaysian government is committed to implement high blend of biodiesel as greener fuel in the future. Short term goal is to implement B15 in 2020 as stipulated in the 11 th Malaysian Plan. Joint research with JAMA and local universities using high biodiesel blends are in progress.

Thank you Email: harrison@mpob.gov.my