Workshop on Higher blending of Biodiesel
(H-FAME) for Automotive Utilisation in ASEAN,
17-18 September 2015, Bangkok, Thailand
Malaysian Policy Towards High Blend
of Biodiesel for Transportation and
Market Experience
Dr. Harrison L. N. Lau
Leader, Biodiesel Technology Group
Leader, MPOB B5/B7/B10 Working Group
Malaysian Palm Oil Board
Presentation Outline
• MPOB Experience in Biodiesel
• Biodiesel Policy and Price Mechanism
• Malaysian Biodiesel and Diesel Standards
• Biodiesel Industry
• Biodiesel Implementation
• Market experience on B7
• Proposal of using higher biodiesel blends and
discussion with auto makers
• B10/B20 trials conducted by MPOB
• Conclusion
MPOB R&D on Palm Biodiesel
• 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
MPOB Palm Biodiesel Pilot Plant
• Exhaustive Field Trial (Phase II):
1990 – 1994: 36 buses
• Fully established as diesel
substitute in 1995
3
Exhaustive Field Trials Using Palm Biodiesel
• Successfully conducted between 1986 – 1994 on diesel
engines of different makes and models.
• Trials involved 36 buses mounted with Mercedes Benz OM352
Engine:
–
–
–
–
100% palm biodiesel (13 buses)
50% : 50% blend (10 buses)
100% Petroleum Diesel – as control (13 buses)
Each bus covered 300,000 km – life time of engine
• No engine modification is required.
• Results in terms of engine performance, fuel consumption,
exhaust emission, repair and maintenance were promising.
4
Field Trials Using Mercedes Benz (Om352) Diesel
Engines Mounted On Passenger Buses
(Each Bus Covered 300,000 Km)
The evaluation of palm biodiesel as diesel
substitutes has led to the following conclusions:
• No modification of diesel engine is required. Wear and tear of
the engines was normal.
• Performance of the engines are generally good. The engines
are easy to start with no knocking and smooth running.
• Exhaust gas emissions of the engines are much cleaner with
less hydrocarbons, NOx, CO amd SO2.
• The engine oil still usable after the recommended distance
travelled.
• Carbon build-up at the injector nozzles was normal except that
the nature of carbon was different. Deposits in the engine
combustion chamber were normal.
• No sludge formation on all the engine parts in contact with the
lubricating oil was observed. This is very encouraging because
Mercedez found that engines running on soyabean methly
ester encountered considerable sludging problems.
Palm Biodiesel Plants (Overseas)
Enertech Biodiesel Plant, South
Korea (2006/07)
New Biodiesel Co. Ltd., Thailand
(2008/09)
Palm Biodiesel Plants (Overseas)
60,000 TPA Palm Biodiesel Plant
La Paz in San Carlos, Colombia
BIOFUEL POLICY
Renewable Energy
Electricity
Biofuel
National Biofuel Policy
Ministry of Plantation Industries and Commodities
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
Malaysian Biofuel Industry Act
• The Act was gazetted on 1st November 2008
• To regulate and ensure orderly development of
the biofuel industry :• Prescribing the type of biofuel
• Percentage blending
• Licensing activities related to biofuel and
other related matters
• Mandatory blending of palm biodiesel
with diesel for local use
Pricing Mechanism
• Petroleum companies purchase biodiesel
at a “fixed formula price” agreed by
government and MBA
• The government fixed the monthly retail
price using “managed float mechanism”
to subsidise or impose tax on the
consumer
• Retail price > Product price = tax mode
Pricing Formula
• Biodiesel per tonne
Average RBDPO price of previous month
+ fixed processing cost @ USD100-120
• Retail diesel price
Average MOPs diesel price of previous
month (93%) + biodiesel price (7%) +
dealer margin + other build up costs
MALAYSIAN BIODIESEL
AND DIESEL STANDARDS
Standard Revision on PME –
MS 2008:2014
Major modifications in this
revision is as follows:
e) an increase in oxidation
stability requirement from 6 h
minimum to 10 h minimum
f) a decrease in the
monoglycerides content from
0.8 % (m/m) to 0.7 % (m/m)
Standard Revision on Diesel –
MS 123-1:2014
Modification in this revision is as
follow:
a) provision is made for a maximum
of 7 % (v/v) of palm methyl ester
(PME) to be included in diesel fuel.
BIODIESEL INDUSTRY
Status of Biodiesel Industry (2015)
Implementation
Phase
Biodiesel Production
No. of Plants
Capacity
(Tonnes/Year)
Commercial Production*
22
3,198,000
Completed Construction**
7
582,400
Produced from Used Cooking Oil
4
107,800
Construction
6
905,000
Pre-Construction / Planning
19
1,691,400
Terminate Biodiesel Project***
2
350,000
59
6,714,600
Total
Note:
* On / Off production
** Completed construction covers the biodiesel plants which have completed but yet to commence production and also
includes those undertaking production trials.
*** Company which had decided not to proceed with biodiesel project, however, its biodiesel manufacturing license
under MPIC is still valid.
Source: BBA, MPIC
Status of Biodiesel Industry
Year
Biodiesel
Production
(Tonnes)
Biodiesel
Exports (Tonnes)
Biodiesel Export
Earnings
(RM Million)
Jan – Aug
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
602,335
87,354
257.37
Location of Biodiesel Plants in Peninsular Malaysia
Kuala Terengganu
Himpunan Sari – 250,000 tan/tahun
Lumut
Carotech – 120,000 tan/tahun
Lereno – 60,000 tan/tahun
Ipoh
Carotech – 45,000 tan/tahun
Segamat
AJ Oleo – 110,000 tan/tahun
Kuantan
Mission Biofuels – 250,000 tan/tahun
Mission Biotechnologies – 100,000 tan/tahun
Plant Biofuels – 100,000 tan/tahun
Pasir Gudang
Carotino – 180,000 tan/tahun
Vance – 600,000 tan/tahun
Nexsol – 100,000 tan/tahun
MVO
– 21,600 tan/tahun
PGEO – 100,000 tan/tahun
Am Biofuels – 30,000 tan/tahun
YPJ Palm International – 120,000 tan/tahun
PZ Bio Energy – 100,000 tan/tahun
Location of Biodiesel Plant in East Malaysia
Sandakan
Green Edible Oil – 100,000
tonne/year
SOP Green Energy Sdn. Bhd.
100,000 tonne/year
(under construction)
Sandakan
LABUAN
Kuching
Senari Biofuels – 108,000 tonne /
year
Bintulu
Tawau
Lahad Datu
Global Biodiesel – 200,000 tonne/year
SPC Biodiesel – 100,000 tonne/year
BIODIESEL IMPLEMENTATION
Implementation of Biodiesel Programme
Implementatio
% of blend
n Date
Region
State
Central
June November 2011
5% (B5)
Southren
WP Putrajaya, Melaka, Negeri
Sembilan, WP Kuala Lumpur &
Selangor
Johor
July 2013
5% (B5)
Eastern
Pahang, Kelantan & Terengganu
February 2014
5% (B5)
Northern
Pulau Pinang, Kedah, Perak &
Perlis
Peninsular Malaysia
March 2014
5% (B5)
November 2014
7% (B7)
December
7% (B7)
Sarawak, Sabah & Labuan
Note: Implementation of biodiesel programme for transportation & fishery sector
only
Nationwide Biodiesel
Implementation – B7
Full implementation in
Peninsular Malaysia - March
2014
Implementation in East
Malaysia - January 2015
Installation of Biodiesel Blending
Facilities at 35 Petroleum Depots
Throughout Malaysia (2011-2015)
PME storage tanks
Unloading area
Blending facilities
Pumps area
Blending Facilities Installed at Petroleum Depot
Pump system
2 unit of PME
vertical skid tanks
and 1 unit PME
storage tanks
Blending Facilities Installed at Petroleum Depot
Pump system
2 units of PME storage tanks
Unloading system
Blending Facilities Installed at Petroleum Depot
4 units of PME skid tanks
Blending system at gantry
Pump system
MARKET EXPERIENCE ON B7
Fuel Filter Plugging
• Korean company reported > 30 cases of
fuel filter plugging in Malaysia since
introduction of B7 in the market
• Five (5) fuel filter samples from Hyundai
were cut opened and diagnosed
• Test conducted: visual inspection,
extraction of contaminants, GC, SEM and
FTIR analysis
Table 1: Type of contaminants on filter surface and
filter leaf extracts from samples
SEM, GC and FTIR
Top layer
Bottom layer
Conclusion of Fuel Filter Analysis
The analysis results shows that the cause
of fuel filter blocking was not due to
biodiesel component in diesel. Based on
the evidence of analysis obtained, it is
diagnosed that the black waxy substances
recovered from the fuel filter were
asphaltenes–like materials. There is also a
possibility that water accumulation in fuel
filter has caused the fuel filter blocking.
Joint Fuel Monitoring with JAMA
• Not all the specifications of B7 fuel as
recommended by JAMA has been incorporated
in the Malaysian standard
• Parameters not included: moisture 200 ppm,
oxidative stability 65 min.
• MPOB conducted Joint Fuel Monitoring
Programme with JAMA to ensure the actual fuel
quality in the market
• First meeting held in July 2015 and results on B7
fuel were presented
Water Content (ISO 12937) – 2014/15
500
500
450
400
Sample: 142
450
Sampling period: Jan – Dec 2014
Sampling area: Peninsular Malaysia 400
350
350
300
300
250
250
200
200
B10
150
150
100
100
50
50
0
0
0.00
2.00
4.00
6.00
8.00
10.00
Sample: 73
Sampling period: April 2015
Sampling area: Borneo
0.00
2.00
4.00
6.00
8.00
Oxidative Stability – PetroOXY
(ASTM D7545) – 2014/15
1400
1200
Sample: 142
Sampling period: Jan – Dec 2014
Sampling area: Peninsular Malaysia
900
Sample: 73
Sampling period: April 2015
Sampling area: Borneo
800
700
1000
600
800
500
600
400
300
400
200
200
65
0
B10
0.00
2.00
4.00
6.00
8.00
10.00
100
65
0
0.00
2.00
4.00
6.00
8.00
PROPOSAL OF USING HIGHER
BIODIESEL BLENDS AND DISCUSSION
WITH AUTO MAKERS
Consultation Meeting on B10
• Government announced of B10 implementation by
October 2015
• Objection received from BMW that B10 will have
detrimental effects on engine
• Consultation meeting held to summaries the findings
of B10 trials carried out around the world including
report by JATOP
• Survey questionnaire sent after the meeting to
obtain official feedback from auto makers
Biodiesel trials using more than 7% biodiesel
Summary of Tests Conducted by
Various Organisations
Preliminary Proposal on Joint Research
on Precipitation Test on B10
Implementation between MPOB and JAMA
• Concerns on fuel filter clogging at highlands in
actual vehicle running conditions
• Verifications test using various biodiesel blends to
be conducted in Malaysia
• Propose measure to prevent upper concerns
• Meeting on 21 Sept 2015 to discuss the proposal
Source JAMA
B10/B20 TRIALS
CONDUCTED BY MPOB
MPOB Biodiesel Projects
Biodiesel Incentive Scheme for
Industrial Use (>B10)
B10 & B20 MPOB Vehicles
B10 Peugeot Car
Implemented
B10 Alam Flora
B10 DBKL
B10 Fishery Sector
B10 Armed Forces
B7 Locomotive Use
B10 Power Plant
On-going
discussion
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
List of MPOB Vehicles Involved in B10 and B20 Programme
No.
B10 Vehicles
1.
2.
3.
4.
5.
6.
9.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
B20 Vehicles
1.
2.
3.
4.
5.
6.
Type
Registration No.
Year
Mitsubishi Pajero Sport
Ford Everest
Toyota Hilux
Toyota Fortuner
Toyota Hilux
Mitsubishi Triton
Toyota Hilux
Toyota Fortuner
Toyota Fortuner
Mitsubishi Pajero
Mercedes Benz ML 270
Bas – MAN
Ford Everest
Mitsubishi Pajero
Hyundai Grand Starex
Peugeot 508 GT
Peugeot 508 GT
Peugeot 508 GT
WUD 5601
WPW 7902
WVY 6404
WQU 6715
WRM 3092
WWH 2858
WWK 5206
WVS 3257
WVS 3242
WMB 9684
WPE 13
WMK 7604
WQE 4507
WKY 965
WUM 1142
WYC 5465
WYS 53
WYS 393
2010
2007
2011
2007
2008
2012
2012
2011
2011
2007
2006
2005
2007
2003
2010
2013
2013
2013
Toyota Fortuner (B20)
Toyota Hilux (B20)
Ssangyong Rexton (B20)
Mitsubishi Pajero (B20)
Ford Everest (B20)
Mercedes Benz (B20)
WQQ 9217
WRM 3352
WPE 388
WKY 986
WSQ 4051
BDQ 2121
2007
2008
2006
2003
2009
1992
List of 50 KL City Hall Diesel Vehicles Involved in B10 Programme
Peugeot 508 GT (Euro 5 Engine)
• Filter sample acquired at vehicle 60,000km
service interval.
• No deposits observed in filter.
Used Lube Oil Analysis
Peugeot 508 GT (Euro 5 Engine)
Used Lube Oil Analysis
Toyota Fortuner (Euro 3 Engine)
Test
Metals (ppm)
Aluminium
Nickel
Copper
Chromium
Iron
Lead
Tin
Contaminants and Additives (ppm)
Silicon
Boron
Sodium
Potassium
Phosphorus
Molybdenum
Calcium
Magnesium
Zinc
Physical tests
Water (%)
Soot (%)
Viscosity (cST, 100 deg. C)
PQ Index
Oxidation (Abs)
Sulphation (Abs)
Fuel (%)
Total Base Number (FTIR)
Lab Analysis
WA 8785 A
NLO/5K
ULO/5K
Limits
ULO/1K
55 max
3 max
100 max
38 max
100 max
30 max
24 max
2
<1
28
<1
10
<1
1
1
<1
<1
<1
1
<1
1
3
<1
7
<1
8
<1
<1
3
1
4
<1
6
1
<1
200 max
102
16
4
<1
699
2
1858
7
1097
10
329
3
<1
986
36
3377
10
1578
37
290
2
<1
985
33
3255
10
1542
21
283
2
<1
972
36
3196
26
1533
<0.1
0.4
10.8
<10
5.9
10.2
1
6.3
Normal
<0.1
0.4
13.5
<10
7.6
12.9
1
9.8
Normal
<0.1
0.4
13
<10
8.6
14.3
1
9.5
Normal
<0.1
0.4
13
<10
6.2
10.9
1
10.3
Normal
less 25% (critical low)
0.2% max
3% max
10% min, 20% max
23 max
40 max
2% max
2 min
ULO/10K
B20 for Bunkering
Manufacturer
Daihatsu
Hanshin
Niigata
Type
6DSM 26F/1912KW
6EL30-69
6LUN28
6L26BGSH/6
CYLINDER 563 KW
6MF-UT
6M26ZG/597 KW
Ships and Engine
Loading pipe
Loading jetty
Receiving ship
Loading of biodiesel at jetty
Ships and Engine
Receiving ship
Dispensing ship
Unloading of biodiesel at sea
Conclusion
• Biodiesel mandate
– B7 implemented: Continuous engagement
with JAMA on joint fuel monitoring
programme
– B10: Ongoing consultation with relevant
stakeholders e.g. conduct verification test
on precipitation at highlands
– B15: 2020
Thank you