Diesel owners: Putrajaya to implement B10 Biodiesel. Thoughts?

[Sirimusa]

As you probably hear, the Government has decided to implement a new biodiesel blend, increasing palm oil methyl to 10% instead of the current 5%. Needless to say that this is extremely disappointing new but for policy observers bros, this is not a surprise. I still remember when B5 was supposed to absorb 500,000 tonnes of palm oil per annum to reduce domestic stockpiles but it has failed miserably. Less than half of that has been used therefore increasing palm oil stockpiles. Now, to protect the unethical palm oil industry, plundering our primary jungles (remember the 14 dead elephants in Sabah who were poisoned? There is extremely high suspicion a palm oil company is responsible but the lobby is so strong in Malaysia, the findings will be diluted) and employing hundreds of thousands below minimum wage, diesel owners have to pay the price. Still, it seems the government will stick to low quality diesel and harm it even more with a higher methyl blend. No tests have been done (we are currently the testers before a nationwide roll-out of B5) and we will further test B10. I'm also very unhappy with BMW's response: they clearly wrote on their caps B7 blend max but now tell us in the light of Malaysia's new biodiesel roll out, B13 is max. You know what guys, it seems like we will be paying the price for this. Malaysia has clearly no diesel ambitions. Looks like we're going to have to bite the bullet and risk our cars. Any thoughts Gentlemen?Cheers!

 

[tweiboon]

As you probably hear, the Government has decided to implement a new biodiesel blend, increasing palm oil methyl to 10% instead of the current 5%.

Needless to say that this is extremely disappointing new but for policy observers bros, this is not a surprise. I still remember when B5 was supposed to absorb 500,000 tonnes of palm oil per annum to reduce domestic stockpiles but it has failed miserably. Less than half of that has been used therefore increasing palm oil stockpiles. Now, to protect the unethical palm oil industry, plundering our primary jungles (remember the 14 dead elephants in Sabah who were poisoned? There is extremely high suspicion a palm oil company is responsible but the lobby is so strong in Malaysia, the findings will be diluted) and employing hundreds of thousands below minimum wage, diesel owners have to pay the price. Still, it seems the government will stick to low quality diesel and harm it even more with a higher methyl blend.

No tests have been done (we are currently the testers before a nationwide roll-out of B5) and we will further test B10.

I'm also very unhappy with BMW's response: they clearly wrote on their caps B7 blend max but now tell us in the light of Malaysia's new biodiesel roll out, B13 is max. You know what guys, it seems like we will be paying the price for this. Malaysia has clearly no diesel ambitions. Looks like we're going to have to bite the bullet and risk our cars.

Any thoughts Gentlemen?

Cheers!

Is it change the government will be better ?

 

[haywire]

You change the government, the palm oil companies are still there. The lobbyist are still there.

 

[kuntakinte]

Yeah, is pretty disappointing news. You can already feel the difference between the b5 and the real deal. I think BMW builds their engine with reasonable tolerances so while the cap says b7 max, I'm sure it's OK to gulp in b10 too otherwise BMW would not be so stupid to make an official statement and expose themselves to a class action suit if b10 decimates the engine later. Of course, someone has to prove it's the cause first.

I guess even if euro 4m comes in in 2014, they'll have to blend it with palm oil eventually. Live with it

 

[Sirimusa]

Oh, I can live with B10. What I can't live with is a lack of vision and policy dedication. The ONLY reason why B10 is launched is because of immense domestic stockpiles of palm oil and reduce the inventory in the short term, so it's not a green/energy saving policy. My question is, once China and India demand for palm oil rises, the price of palm oil goes the roof, what happens? Do we scrap B10 again and go back to B5 or even B0? Or do we raise the price of B10? I can guarantee you that non of these issues have been seriously addressed. Short term, short term. The rakyat and tax payer foot the bill....

 

[splee]

Just do what we need to do.

 

[azmany72]

From a refining perspective biodiesel is only economically viable at a CPO price of RM2500 and below. Anything beyond that and the industry is actually subsidizing it as biodiesel from other feedstocks are actually cheaper WITH transport to Malaysia taken into account. On top of that there are food security issues that though do not show their head now will come in a few years time.
Thus IMHO B5 will be the staple for the long term with this B10 being a flash in the pan temporary measure till CPO prices go up.

 

[kama]

Its pity since we as consumers had no choice like petrol..why cant we have a choice probably euro 5 or 6 as superior diesel, then euro 2 as subsidized diesel and biodiesel. Make the biodiesel and euro 2 diesel attractive price so older cars can use them. At the moment we have no choice but to use whatever diesel there is in the market. Thai and vietnam is already on ero 4 and 3, we are lagging..

 

[BenedictC]

This B10 issue is indeed worrying, and statement from BMW is not that convincing.

The infra for euro 4 is not going to be cheap nor easy. But eventually, Malaysia will have to catch up.

 

[Mavik]

This B10 issue is indeed worrying, and statement from BMW is not that convincing.

The infra for euro 4 is not going to be cheap nor easy. But eventually, Malaysia will have to catch up.

We are already producing extremely low sulphur content diesel but exporting it out. So infra wise, isn't that much of a difference for Euro 2 and Euro 4.

 

[splee]

I think the diesel owners are too few to fight for garmen attention.

 

[Ryou]

Like all gov policies, this is very likely flash in the pan. CPO stocks have already begun to go down, the China situation has been resolved, as soon as CPO prices pick up, the gov will have to rescind the order, especially if CPO can hit back the heyday prices of early last year

 

[Sirimusa]

Yes you are right, there are too little private diesel users (outside of the logistics and transport industry). What I was lamenting was the lack of vision: why is Biodiesel/Diesel not part of their green/energy saving master plan? Why do we always have to be caught by surprise when someone suddenly decides on a policy u-turn.

Is it that much to ask for a masterplan?! I mean c'mon. Tell us what will be happening to fuel prices, fuel quality, consumption, diesel quality over the next 10 years. Why is it that one morning we all have to wake-up to silly decisions that end-up affecting us.

Another example, AEC 2015 is in 2 years and the Government has still not told us how the subsidies will be affected (ie fuel and diesel prices because it will HAVE to be rationalized) and our energy masterplan. Instead, just a few weeks before, see the Government catching all Malaysians by surprise with ridiculous decisions which will cost taxpayers.

My point is, fine, you want B10, go for it, but plan it, build it up, tell us when, for how long? Part of what masterplan. We still don't know about Euro 3 or 4 diesel. They can't even answer the question: yes, maybe, no, not yet... Where's the planning???!
Goodness I'm getting fed-up with those idiot policy-makers.

I think the diesel owners are too few to fight for garmen attention.

 

[mokhtar818]

dont worry.malaysia is good in planning but poor in implementation.todays talk only fruitful in next 4 years.

 

[azmany72]

The largest consumer of diesel, the transport and logistics industry, would not benefit from Eu4 quality fuel. Look at all the lorries and buses we have on our road today. Its a sad state. What has been junk yarded in other countries, we have imported, refurbished and put on the road. We even have lorries with wooden panels still running for goodness sake. So sadly IMHO don't hold your breath on better quality diesel.

 

[kama]

Yeah true..but we should not look at the present scenario for not upgrading the quality...should have a more collective and serious effort from those high diesel users, automakers and association to push govt for better product and to have clear understanding on our fuel strategy direction and planning...presently it looks like nobody really care and responsible enough..

 

[_M_]

The National Biofuel Policy has been around since 2006. National Renewable Energy Policy & Action Plan since 2010.

Like most long term strategies, tactical adjustments need to be made along the way.

Bash the Govt if they deserve it.. which can be in most cases.. but do abit of homework first la.

 

[Sirimusa]

_M_ I don't want this thread to go personal, but I hate being accused of being a Government basher because clearly that was not the intent. FYI, I am myself a policy analyst with a large bank here. I've read all the conceivable master plans that have been published, blueprints, the Khazanah blue, red and green book. So saying I'm not doing my homework is a blow below the belt for you to close the debate.

Malaysia does mention that biodiesel is part of there long term policy in their 2011 Energy Masterplan which was revealed by the Malaysian Energy Comission. But for your honorable information, there was absolutely NO date nor mention on the rollout of B10. None.

Whether current government or opposition, there is a chronic lack of planning in this country and this permeates through corporations, politics, families, everything. So please, don't go around starting a debate on who bashes and doesn't bash government. That's a discussion for little kids. We're mature adults and when we see a clear underperformance, poor policies being rolled out without prior planning and much thought put behind it, I think it is an absolute obligation for all of us to voice discontent in a civilized manner and spur a debate which could arrive to a dynamic conclusion. I was just hoping that the government and policy makers could consider diesel as a long term energy policy rather than a palm oil dumping ground leading to silly last minute decisions.

The government is excited about hybrid cars which require a phenomenal amount of investments and infrastructure which Malaysia will struggle to roll-out. If you look at Europe, they've taken the pragmatic way: hybrids are NOT taking off so they are investing heavy on clean diesels. Minimal investment and results much better than hybrid. That's what happens when policy makers think. Here, we want to champion all causes: biodiesel, hybrid, nuclear, geothermal, solar, world's largest this and that and never achieve. Can we just focus on one policy, do it right, lead the way and be the best?

 

[anaksarawak]

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