FELDA launched a new alternative for energy - The B100

In the face of global diesel price volatility due to ongoing conflicts in West Asia, Biodiesel B100 is now seen as a strategic solution to strengthen the country's energy security. So, what should you know about it?

A new potential for the country

For your information, B100 is a 100 per cent pure biodiesel fuel based on palm oil or palm methyl ester. Unlike the B10 blend widely used at petrol stations today, B100 has the potential to be used directly in most diesel engines without the need for major vehicle modifications.

According to a report by The Edge Malaysia, FELDA chairman Datuk Seri Ahmad Shabery Cheek stated that B100 is now a very competitive alternative energy source. At the factory level, the price of B100 is estimated to be around RM4.40 to RM4.50 per litre, depending on the price of crude palm oil (CPO).

Moreover, this figure is much lower when compared to the current industrial diesel price, which reaches RM7 per litre, while the B10 blend is at around RM6.02 per litre. With this large price gap, B100 is not only able to save operating costs in the transportation sector, but also helps stabilise domestic fuel prices.

The effectiveness of this fuel has already been proven through a series of pilot tests conducted by FELDA and FG. Starting in 2024, a four-month test involving tanker trucks was a success without any major problems.

Meanwhile, for the years 2025 to 2026, the second phase of testing has been carried out on passenger vehicles such as the Mazda CX-8 that have travelled more than 50,000 km. The results so far show no significant issues with engine performance, thus proving the stability of the B100 for long-term use.

A more environmentally friendly alternative

Apart from the savings factor, the implementation of B100 brings great advantages to the local palm oil industry by increasing demand for palm oil, which directly benefits smallholders. As a renewable fuel, it is also much more environmentally friendly as it can reduce carbon emissions compared to fossil diesel. This move is seen as being able to reduce Malaysia's dependence on fossil fuel imports, especially at a time when global markets are in turmoil.

However, large-scale implementation still faces challenges in terms of sufficient crude palm oil (CPO) supply and the need for clearer government policy. Quoting Datuk Seri Ahmad Shabery's statement via RT, he has raised this issue with the country's top leadership,p including Prime Minister Datuk Seri Anwar Ibrahim.

While waiting for the policy to be refined, B100 is expected to be implemented within FELDA's internal ecosystem first as an initial step before being expanded to the national level.

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