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Recent trends, opportunities and challenges of biodiesel in Malaysia: An overview

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  • Lim, Steven
  • Teong, Lee Keat

Abstract

Energy supply and its security issues have been the topic of interest lately. With growing environmental awareness about the negative implications brought by excessive usage of fossil fuels, the race for finding alternative energy as their substitutions is getting heated up. For now, renewable energy from biodiesel has been touted as one of the most promising substitutions for petroleum-derived diesel. Combustion of biodiesel as fuel is more environment-friendly while retaining most of the positive engine properties of petroleum-derived diesel. Production of biodiesel is also a proven technology with established commercialization activities. The huge potential of biodiesel coupled with the abundance of palm oil which is one of the most cost-effective feedstocks for biodiesel is responsible for the pledging of Malaysia to become the leading producer of high quality biodiesel in the region. Currently, total approved installed capacity of biodiesel production in Malaysia equals to almost 92% of the world biodiesel production output in 2008. While Malaysia does indeed possessed materials, technologies and marketing superiority to vie for that position, many more challenges are still awaiting. The price restriction, provisions controversy, escalating non-tariff trade barriers and negligible public support need to be addressed appropriately. In this review, Malaysia's previous and current position in global biodiesel market, its future potential towards the prominent leading biodiesel status and major disrupting obstacles are being discussed. The feasibility of utilizing algae as the up-and-coming biodiesel feedstock in Malaysia is also under scrutiny. Lastly, several recommendations on the roles played by three major forces in Malaysia's biodiesel industry are presented to tackle the shortcomings in achieving the coveted status by Malaysia. It is hope that Malaysia's progress in biodiesel industry will not only benefit itself but rather as the role model to catalyst the development of global biofuels industry as a whole.

Suggested Citation

  • Lim, Steven & Teong, Lee Keat, 2010. "Recent trends, opportunities and challenges of biodiesel in Malaysia: An overview," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(3), pages 938-954, April.
    • Handle: RePEc:eee:rensus:v:14:y:2010:i:3:p:938-954
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