Controversial B10 biodiesel hits snag

A proposal to push through a controversial B10 bio-diesel next month hits more snags, much to the relief of car and oil companies that want validated testing of the palm-oil based fuel.
Firstly, the proposed B10 biodiesel will cost more than the current Euro5 diesel (RM1.70/litre) which currently has a 7% concentration of palm oil, a blend which is called B7.
Secondly, the proposal to introduce this B10 biodiesel in the southern zone will be seen as an unfair imposition on the affected pilot zone.
The Minister of Plantation Industries and Commodities (MPIC), Datuk Seri Mah Siew Keong (pix), was reported as saying that B10 bio-diesel would be rolled out in the fourth quarter this year.
He was quoted in a Malaysia Day special in a national English daily.
In fact, Mah could have been over-enthusiastic because the government has agreed that there must be a consensus on this technical issue involving the stakeholders.
The consensus won't happen anytime soon because oil companies will not want exposure to the liability of supplying B10 unless this blend is tested and validated by engine makers.
"Sort out the engine warranty first and then we do B10. We don't need the liability of supplying a fuel that is not approved by engine makers," he said.
"There are claims that B10 is used in Indonesia but the real picture is that B10 diesel is only available in some Pertamina stations and nowhere else," he said.
From the point of view of car companies in Malaysia, the stakeholders agreed that the discussions were in the very early stage.
"Last time we had a talk with MPIC, they said that the OEMs were OK when we weren't," said a participant at MAI's first round table last month.
The Malaysia Automotive Institute (MAI) is coordinating efforts in introducing B10 bio diesel to the Malaysian market, consistent with the government's direction of greener emissions and reduced fossil fuel dependency.
A key area of concern for the industry think-tank is a common test methodology that addresses the technical requirements of all parties involved.
This is a good opportunity for MPIC and MPOB to do pioneering research on B10 in cooperation with car makers such as BMW which a year ago supplied a BMW520d and a BMW 320d to MPOB for testing.