Dr. Harrison L. N. Lau Leader, Biodiesel Technology Group
Leader, MPOB B5/B7/B10 Working Group Malaysian Palm Oil Board
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
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
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• 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
• Exhaustive Field Trial (Phase II): 1990 – 1994: 36 buses
• Fully established as diesel substitute in 1995
MPOB Palm Biodiesel Pilot Plant
MPOB R&D on Palm Biodiesel
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• 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.
Exhaustive Field Trials Using Palm Biodiesel
Field Trials Using Mercedes Benz (Om352) Diesel Engines Mounted On Passenger Buses
(Each Bus Covered 300,000 Km)
• 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.
The evaluation of palm biodiesel as diesel substitutes has led to the following conclusions:
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
Palm Biodiesel Plants (Overseas)
BIOFUEL POLICY
Renewable Energy Electricity Biofuel
The National Biofuel Policy launched in March 2006.
National Biofuel Policy Ministry of Plantation Industries and Commodities
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
• 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
Malaysian Biofuel Industry Act
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
No. of Plants Biodiesel Production
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
Total 59 6,714,600
Source: BBA, MPIC
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.
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
Ipoh Carotech – 45,000 tan/tahun
Kuantan Mission Biofuels – 250,000 tan/tahun Mission Biotechnologies – 100,000 tan/tahun Plant Biofuels – 100,000 tan/tahun
Location of Biodiesel Plants in Peninsular Malaysia
Segamat AJ Oleo – 110,000 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
Lumut Carotech – 120,000 tan/tahun Lereno – 60,000 tan/tahun
Kuala Terengganu Himpunan Sari – 250,000 tan/tahun
Location of Biodiesel Plant in East Malaysia
Sandakan
LABUAN
Tawau Bintulu
Sandakan Green Edible Oil – 100,000 tonne/year
Lahad Datu Global Biodiesel – 200,000 tonne/year SPC Biodiesel – 100,000 tonne/year
Kuching Senari Biofuels – 108,000 tonne / year
SOP Green Energy Sdn. Bhd. 100,000 tonne/year
(under construction)
BIODIESEL IMPLEMENTATION
Implementation of Biodiesel Programme
Region State Implementatio
n Date % of blend
Central WP Putrajaya, Melaka, Negeri Sembilan, WP Kuala Lumpur &
Selangor
June - November 2011
5% (B5)
Southren Johor July 2013 5% (B5)
Eastern Pahang, Kelantan & Terengganu February 2014 5% (B5)
Northern Pulau Pinang, Kedah, Perak & Perlis
March 2014 5% (B5)
Peninsular Malaysia November 2014 7% (B7)
Sarawak, Sabah & Labuan December 7% (B7)
Note: Implementation of biodiesel programme for transportation & fishery sector only
Nationwide Biodiesel Implementation – B7
Implementation in East Malaysia - January 2015
Full implementation in Peninsular Malaysia - March
2014
Installation of Biodiesel Blending Facilities at 35 Petroleum Depots Throughout Malaysia (2011-2015)
PME storage tanks Blending facilities
Unloading area Pumps area
2 unit of PME vertical skid tanks and 1 unit PME storage tanks
Pump system
Blending Facilities Installed at Petroleum Depot
Pump system
Unloading system
2 units of PME storage tanks
Blending Facilities Installed at Petroleum Depot
Pump system
4 units of PME skid tanks
Blending system at gantry
Blending Facilities Installed at Petroleum Depot
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
0
50
100
150
200
250
300
350
400
450
500
0.00 2.00 4.00 6.00 8.00 10.00
Sample: 142 Sampling period: Jan – Dec 2014 Sampling area: Peninsular Malaysia
B10
0
50
100
150
200
250
300
350
400
450
500
0.00 2.00 4.00 6.00 8.00
Sample: 73 Sampling period: April 2015 Sampling area: Borneo
Oxidative Stability – PetroOXY (ASTM D7545) – 2014/15
0
200
400
600
800
1000
1200
1400
0.00 2.00 4.00 6.00 8.00 10.00
Sample: 142 Sampling period: Jan – Dec 2014 Sampling area: Peninsular Malaysia
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B10
0
100
200
300
400
500
600
700
800
900
0.00 2.00 4.00 6.00 8.00
Sample: 73 Sampling period: April 2015 Sampling area: Borneo
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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
B10 Alam Flora
B10 DBKL
B10 Fishery Sector
B10 Armed Forces
B7 Locomotive Use
B10 Power Plant
Implemented
On-going discussion
B10 & B20 MPOB Vehicles
B10 with Alam Flora
B10 Peugeot Car
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
MPOB B10/B20 Trial Projects
No. Type Registration No. Year
B10 Vehicles 1. Mitsubishi Pajero Sport WUD 5601 2010 2. Ford Everest WPW 7902 2007 3. Toyota Hilux WVY 6404 2011 4. Toyota Fortuner WQU 6715 2007 5. Toyota Hilux WRM 3092 2008 6. Mitsubishi Triton WWH 2858 2012 9. Toyota Hilux WWK 5206 2012 7. Toyota Fortuner WVS 3257 2011 8. Toyota Fortuner WVS 3242 2011 9. Mitsubishi Pajero WMB 9684 2007
10. Mercedes Benz ML 270 WPE 13 2006 11. Bas – MAN WMK 7604 2005 12. Ford Everest WQE 4507 2007 13. Mitsubishi Pajero WKY 965 2003 14. Hyundai Grand Starex WUM 1142 2010 15. Peugeot 508 GT WYC 5465 2013 16. Peugeot 508 GT WYS 53 2013 17. Peugeot 508 GT WYS 393 2013
B20 Vehicles 1. Toyota Fortuner (B20) WQQ 9217 2007 2. Toyota Hilux (B20) WRM 3352 2008 3. Ssangyong Rexton (B20) WPE 388 2006 4. Mitsubishi Pajero (B20) WKY 986 2003 5. Ford Everest (B20) WSQ 4051 2009 6. Mercedes Benz (B20) BDQ 2121 1992
List of MPOB Vehicles Involved in B10 and B20 Progr amme
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)
WA 8785 A Test Limits ULO/1K NLO/5K ULO/5K ULO/10K
Metals (ppm) Aluminium 55 max 2 1 3 3
Nickel 3 max <1 <1 <1 1 Copper 100 max 28 <1 7 4
Chromium 38 max <1 <1 <1 <1 Iron 100 max 10 1 8 6 Lead 30 max <1 <1 <1 1 Tin 24 max 1 1 <1 <1
Contaminants and Additives (ppm) Silicon 200 max 102 10 37 21 Boron
less 25% (critical low)
16 329 290 283 Sodium 4 3 2 2
Potassium <1 <1 <1 <1 Phosphorus 699 986 985 972 Molybdenum 2 36 33 36
Calcium 1858 3377 3255 3196 Magnesium 7 10 10 26
Zinc 1097 1578 1542 1533 Physical tests
Water (%) 0.2% max <0.1 <0.1 <0.1 <0.1 Soot (%) 3% max 0.4 0.4 0.4 0.4
Viscosity (cST, 100 deg. C) 10% min, 20% max 10.8 13.5 13 13 PQ Index <10 <10 <10 <10
Oxidation (Abs) 23 max 5.9 7.6 8.6 6.2 Sulphation (Abs) 40 max 10.2 12.9 14.3 10.9
Fuel (%) 2% max 1 1 1 1 Total Base Number (FTIR) 2 min 6.3 9.8 9.5 10.3
Lab Analysis Normal Normal Normal Normal
Used Lube Oil Analysis Toyota Fortuner (Euro 3 Engine)
B20 for Bunkering
Manufacturer Type Daihatsu 6DSM 26F/1912KW
Hanshin
6EL30-69
6LUN28
6L26BGSH/6 CYLINDER 563 KW
6MF-UT
Niigata 6M26ZG/597 KW
Ships and Engine
Loading of biodiesel at jetty
Loading pipe
Loading jetty
Receiving ship
Ships and Engine
Unloading of biodiesel at sea
Receiving ship
Dispensing ship
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
