FELDA Introduces B100, Biodiesel Made Entirely From Palm Oil As Alternative To Diesel

FELDA believes B100 could help reduce Malaysia's reliance on conventional diesel.

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FELDA has introduced B100, a biodiesel made entirely from palm oil, as a potential alternative energy source amid global energy uncertainties driven by the West Asia crisis

According to Bernama, FELDA chairman Datuk Seri Ahmad Shabery Cheek said B100, which is 100% made from palm oil, has strong potential to become a competitive and sustainable substitute for conventional diesel.

He said FELDA is keen to implement the use of B100, but the initiative is still at the policy stage and will require government support to expand production capacity.

"At this stage, a government policy needs to be in place, as we may not have sufficient crude palm oil supply to roll out B100 immediately," he said during a press conference on Tuesday, 7 April.

Ahmad Shabery added that he has raised the matter with Prime Minister Datuk Seri Anwar Ibrahim and Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.

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Image via New Straits Times

Ahmad Shabery added that with an estimated price of below RM5 per litre, B100 could help reduce Malaysia's reliance on diesel, stabilise domestic fuel prices, and strengthen the country's energy security

He said the biodiesel's factory price is estimated to cost about RM4.50 per litre, based on crude palm oil prices, making it competitive with current diesel prices.

However, he said FELDA and FGV Holdings will also need to expand their B100 biodiesel processing facilities to increase production capacity.

"We are having discussions to determine the form of partnership, whether to involve full private sector participation, government support, or other parties, to meet the requirement of raising B100 capacity," he said.

He added that B100 is already being used within the FELDA ecosystem

He said pilot projects involving passenger vehicles were conducted in 2025, covering more than 50,000km over a 15-month period.

A separate four-month trial involving tanker trucks was also carried out earlier in 2024, he added.

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