Malaysia on Tuesday launched its B5 palm oil-based biofuel, which is a mixture of 5 percent of processed palm oil and 95 percent of petroleum diesel.

"If we are prudent in using the palm oil resource and have a holistic fuel strategy ... we will be able to tide over the world crude oil price crisis and guarantee a sustainable and competitive energy source for the country," Prime Minister Abdullah Ahmad Badawi said at the launching ceremony.

He hoped the use of biofuel would change people's perception of the potential of the oil palm and agro-based industry sector in this country.

The use of the biofuel, called "Envo Diesel", will be implemented in stages starting with vehicles of selected governmental agencies and then moving on the public us, Badawi said.

Studies conducted by the Malaysian Palm Oil Board (MPOB) have shown the use of palm oil-based biofuel does not require modifying vehicle engines, said Badawi.

The use of palm biofuel had been successfully implemented on a trial basis in MPOB vehicles, said Badawi, adding as the next step, the Defense Ministry, the Selangor Public Works Department, Kuala Lumpur City Hall and agencies under the Ministry of Plantation Industries and Commodities would use the fuel in their vehicles.

The idea of the palm biodiesel project was born in 1982 and the Cabinet received a working plan in March 1983. In March 2004, the trial use of Envo Diesel began with vehicles owned by MPOB.

Source: Xinhua