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The challenges and prospects of palm oil based biodiesel in Malaysia

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  • Johari, Anwar
  • Nyakuma, Bemgba Bevan
  • Mohd Nor, Shadiah Husna
  • Mat, Ramli
  • Hashim, Haslenda
  • Ahmad, Arshad
  • Yamani Zakaria, Zaki
  • Tuan Abdullah, Tuan Amran

Abstract

The NBP (National Biofuel Policy) of Malaysia was established in 2006 to promote the sustainable production and utilization of environmentally friendly biofuels. Despite numerous government incentives and subsidies, biodiesel exports have declined significantly over the years. This paper seeks to critically examine challenges afflicting the biodiesel industry in Malaysia by analysing the key policies, framework and institutions in the country. High feedstock prices, competition with food, engine compatibility, fuel subsidies and crude oil prices were identified as the challenges hindering biodiesel development in Malaysia. The authors propose that environmental, socioeconomic and technological reforms are required to address the challenges and improve the long term prospects of the Malaysian biodiesel industry. Furthermore, the utilization of biodiesel in the Real sector, biodiesel infrastructure investments and technological innovations will safeguard Malaysia's energy security, promote cleaner environment, improve living standards and stimulate stakeholder participation in the future development, diffusion and adoption of biodiesel in Malaysia.

Suggested Citation

  • Johari, Anwar & Nyakuma, Bemgba Bevan & Mohd Nor, Shadiah Husna & Mat, Ramli & Hashim, Haslenda & Ahmad, Arshad & Yamani Zakaria, Zaki & Tuan Abdullah, Tuan Amran, 2015. "The challenges and prospects of palm oil based biodiesel in Malaysia," Energy, Elsevier, vol. 81(C), pages 255-261.
    • Handle: RePEc:eee:energy:v:81:y:2015:i:c:p:255-261
    DOI: 10.1016/j.energy.2014.12.037
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    8. Mohd Noor, C.W. & Noor, M.M. & Mamat, R., 2018. "Biodiesel as alternative fuel for marine diesel engine applications: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 127-142.
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    13. Gülüm, Mert & Bilgin, Atilla, 2018. "A comprehensive study on measurement and prediction of viscosity of biodiesel-diesel-alcohol ternary blends," Energy, Elsevier, vol. 148(C), pages 341-361.
    14. Zhang, Xiaolei & Yan, Song & Tyagi, Rajeshwar Dayal & Drogui, Patrick & Surampalli, Rao Y., 2016. "Ultrasonication aided biodiesel production from one-step and two-step transesterification of sludge derived lipid," Energy, Elsevier, vol. 94(C), pages 401-408.
    15. Ariodillah Hidayat & Bernadette Robiani & Taufiq Marwa & Suhel Suhel, 2023. "Competitiveness, Market Structure, and Energy Policies: A Case Study of the World s Largest Crude Palm Oil Exporter," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 111-121, May.
    16. Zandie, Mohammad & Ng, Hoon Kiat & Gan, Suyin & Muhamad Said, Mohd Farid & Cheng, Xinwei, 2022. "A comprehensive CFD study of the spray combustion, soot formation and emissions of ternary mixtures of diesel, biodiesel and gasoline under compression ignition engine-relevant conditions," Energy, Elsevier, vol. 260(C).
    17. Harahap, Fumi & Silveira, Semida & Khatiwada, Dilip, 2019. "Cost competitiveness of palm oil biodiesel production in Indonesia," Energy, Elsevier, vol. 170(C), pages 62-72.

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