KUALA LUMPUR (April 24): Malaysia’s plan to expand biodiesel usage to B15 in order to strengthen its energy security will be anchored by the development of a biofuels hub in Pengerang, according to Economy Minister Akmal Nasrullah Mohd Nasir.

Located in Johor, Pengerang already hosts main industrial assets, including the Pengerang Integrated Complex (PIC) and All Cosmos Industries Sdn Bhd (ACI), which together play a strategic role in Malaysia’s energy, petrochemical and fertiliser ecosystems, he said.

"The development forms part of broader efforts to enhance the country’s resilience against supply chain disruptions driven by geopolitical tensions, rising input costs and global trade uncertainties," Akmal Nasrullah added. 

The B15 biodiesel mandate is a government policy to increase the national biofuel blend ratio to 15% palm oil-based methyl ester and 85% petroleum diesel. Mandated to improve energy security and support local palm oil demand, it will be implemented in stages starting from B12. 

At PIC, Akmal Nasrullah said the complex’s strategic role is in ensuring a stable domestic supply of fuels and petrochemical products, which are main inputs for downstream industries such as plastics manufacturing. 

With a refining capacity of 300,000 barrels per day and petrochemical output exceeding 3.3 million tonnes annually, PIC is important to Malaysia’s energy security while supporting downstream industries and boosting exports of higher value-added products, he added. 

Meanwhile, Akmal Nasrullah said his visit to ACI focused on challenges facing the domestic fertiliser industry, particularly volatile raw material supply, rising logistics costs and persistent input price pressures.

Discussions with the company centred on measures to enhance industry resilience, including diversifying sources of raw materials, improving production efficiency and expanding capacity to meet domestic demand.

The government is also encouraging the adoption of bio-organic fertiliser as an alternative to conventional products, to reduce dependence on imported inputs and extend supply availability during periods of global shortage.

ACI’s production model — which incorporates a 20:80 ratio of bio-organic to conventional fertiliser — indicated a more balanced and sustainable approach to agricultural inputs, supporting Malaysia’s longer-term food security objectives, Akmal Nasrullah said.