Malaysia is launching a B5 biodiesel mandate for its southern region, according to the Malaysian Ministry of Plantation Industries and Commodities, following the success of its program in central Malaysia that consumes 113,000 tons (roughly 34 million gallons) of palm biodiesel per year.

MPIC says implementation of the biodiesel program in the south will create an additional annual demand of 37,270 tons, displacing about 11 million more gallons of petroleum diesel per year. Since July 1, 415 fueling stations across south Malaysia have been selling biodiesel blends.

Once the B5 program is implemented nationwide in July 2014, the total target palm biodiesel consumption will reach 500,000 tons (150 million gallons) per year.

MPIC said the biodiesel program has contributed to a 44 percent increase in palm biodiesel production, from 173,220 tons (52 million gallons) in 2011 to 249,213 tons (75 million gallons) in 2012, while helping stabilize the price of crude palm oil through increased biodiesel demand.

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