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Completed Biodiesel Plants in Malaysia (2025)

 

1. Carotino – Pasir Gudang, Johor

To begin with, Carotino launched Malaysia’s first commercial biodiesel plant in 2006.

2. Wilmar – Multiple Locations (mainly Johor)

Furthermore, Wilmar operates several facilities and remains a major player in the global biodiesel industry.

3. Achi Jaya – Johor

Similarly, Achi Jaya entered the biodiesel sector early and continues to maintain its presence.

4. Vance Bioenergy – Johor

Moreover, Vance Bioenergy runs three plants and produces up to 450,000 tonnes per year.

5. Sime Darby Biodiesel – Carey Island & Teluk Panglima Garang, Selangor

In addition, Sime Darby operates two biodiesel plants across different Selangor locations.

6. FIMA Biodiesel Sdn Bhd – Port Klang, Selangor

Likewise, FIMA Biodiesel actively produces biodiesel and supports Malaysia’s renewable fuel goals.

7. KLK Bioenergy (Zoop) – Shah Alam / Port Klang

Meanwhile, KLK Bioenergy, through Zoop, contributes to production from both Shah Alam and Port Klang.

8. Mewah Group – Pulau Indah, Selangor

Notably, Mewah commissioned its biodiesel facility in 2014 and remains operational.

9. Zoop Sdn Bhd – Shah Alam

Additionally, Zoop engages in biodiesel and palm oil processing from its Shah Alam site.

10. Green Lubes / FGV – Kuantan Port, Pahang

Furthermore, Green Lubes produces 250,000–260,000 tonnes yearly with upgraded refining lines.

11. Mission NewEnergy – Port Kuantan, Pahang

Importantly, Mission NewEnergy operates a 2nd-generation plant using advanced biodiesel technology.

12. Global Bio-Diesel – Lahad Datu, Sabah

Likewise, Global Bio-Diesel runs one of Sabah’s earliest operational biodiesel plants.

13. Green Edible Oil (Green Biofuels) – Sandakan, Sabah

Moreover, Green Biofuels remains active in production and supports Sabah’s bioenergy industry.

14. SPC Biodiesel Sdn Bhd – Lahad Datu, Sabah

However, SPC Biodiesel completed its plant but shows limited activity.

15. Platinum Biofuels Sdn Bhd – Seremban, Negeri Sembilan

Similarly, Platinum Biofuels operates with low activity despite being functional.

16. Senari Biofuels / Global Bonanza – Kuching, Sarawak

Finally, Senari Biofuels completed its plant, yet its output remains limited.

Current State and Outcomes of Malaysia’s Biodiesel Industry

 

Expansion & Mandates

To begin with, the B10 mandate remains active nationwide as a baseline blending policy. Meanwhile, B20 pilot programs are expanding, with recent launches at KL International Airport and key ports. However, nationwide B20 rollout faces delays, since infrastructure upgrades cost around RM643 million—more than what stakeholders are willing to invest.

Production & Capacity

Currently, biodiesel production holds steady at 1.58 billion liters for 2023–2024. Nevertheless, plants continue to underutilize their installed capacity. According to the Malaysian Biodiesel Association (MBA), full B20 adoption could raise output to 2.5 million mt, up from 1.4 million mt in 2023.

Trade & Feedstock

Encouragingly, exports hit a five-year high of 810 million liters in 2024, largely driven by palm-based biodiesel. Strong demand from the EU, Singapore, the US, and China helped boost export volumes. At the same time, Used Cooking Oil (UCO) exports tripled in 2024, further supporting feedstock growth.

Market & Prices

Globally, tight palm oil supply due to aging plantations and Indonesia’s B40 policy keeps prices elevated. As a result, CPO spot prices are projected to average around RM4,200/mT in 2025. However, higher prices squeeze biodiesel margins, making local blending less profitable.

Challenges

Significantly, blending infrastructure remains a key bottleneck, especially in depots needed for B20/B30 expansion. In addition, palm oil price volatility undermines biodiesel’s price competitiveness. Moreover, consumer concerns over engine damage and a declining diesel vehicle base limit domestic demand growth.

Outlook & Opportunities

If current B20 pilots succeed, they could unlock national adoption and possibly a B30 rollout. Furthermore, the growing UCO market and SAF feedstock plans such as Petronas’s 2028 biorefinery present new growth avenues. Forecasts indicate Malaysia’s biofuels sector could grow at 12% CAGR, rising from US$1.2 billion (2023) to US$2.7 billion by 2030.

Summary

Overall, Malaysia’s biodiesel industry remains stable but is not optimized. Although production and exports perform well, domestic growth continues to lag. Key highlights include B20 pilot rollouts, rising export volumes, and increased UCO utilization. Moving forward, infrastructure development and feedstock cost control will determine whether Malaysia transitions from pilot initiatives to large-scale national implementation.