Abstract
This article discusses current status of palm oil-based biodiesel industry in Malaysia, the policies introduced and strategies for its implementation. Due to renewability, high production rate, technical feasibility and role in reducing greenhouse gases (GHG) emission, palm oil is in the right position to supply the energy needs by the incorporation into the diesel supply. As a leading producer of palm oil, Malaysia has embarked on a comprehensive palm biofuel program since 1982. It has successfully established the use of palm biodiesel blend (B5) as a suitable fuel for the transport and industrial sectors through the introduction of the National Biofuel Policy. The current scenario of biodiesel program in Malaysia, as well as biofuel policies with respect to its use, technology, export, environmental issues and implementation aspects are thoroughly discussed. The roles of the policy towards the prosperity of the stakeholders, oil price and the reduction of greenhouse gasses are also highlighted.
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