From Wok to Work: FELDA’s B100 Biodiesel Can Fix the Diesel Price Crisis?

Source: FELDA's official FB

With global energy markets facing constant volatility due to the West Asia crisis, Malaysia is looking inward for a solution. Federal Land Development Authority (FELDA) chairman, Datuk Seri Ahmad Shabery Cheek, recently highlighted a home-grown alternative that could stabilize costs: B100 Biodiesel.

As the government evaluates the transition toward sustainable energy, B100, a 100% palm oil-based biodiesel, is emerging as a frontrunner to strengthen national energy security and protect rakyat’s wallet.

What is B100 Biodiesel?

Unlike the B20 blend currently found at Malaysian pumps (which is a mix of petroleum diesel and 20% palm oil), B100 is pure palm oil-derived fuel.

Federal Land Development Authority (FELDA) chairman, Datuk Seri Ahmad Shabery Cheek (Source: FELDA's official FB)

Ahmad Shabery noted that while implementation is still at the policy stage, the potential benefits are significant:

• Price Stability: The factory price for B100 is estimated at roughly RM4.50 per litre (subject to Crude Palm Oil prices).
• Energy Security: By utilizing local resources, Malaysia reduces its reliance on imported petroleum diesel and global price fluctuations.
• Domestic Support: A shift to B100 directly benefits the domestic palm oil industry and FELDA’s ecosystem of settlers.

Proven Performance: The 50,000km Trial

One of the biggest hurdles for biodiesel is "maintenance anxiety." However, the data looks promising. Since 2025, a pilot project has been running B100 in passenger vehicles for 15 months, covering over 50,000 kilometres without major hitches.

Source: FELDA's official FB

Additionally, a four-month trial using heavy tanker trucks was completed in 2024, proving that the fuel is viable for both light-duty and commercial transport.

The "FELDA First" Strategy

The rollout is expected to begin within the FELDA ecosystem. This "sandbox" approach allows the government to monitor long-term engine health and logistics before a nationwide release.

"At this stage, a government policy needs to be in place, as we may not have sufficient crude palm oil (CPO) supply to roll out B100 immediately," said Datuk Seri Ahmad Shabery Cheek.

To meet the demand, FELDA and FGV Holdings Bhd are in discussions to expand processing plant capacities, potentially involving private sector partnerships to scale production.

The Bottom Line for Drivers

At an estimated price below RM5.00 per litre, B100 could act as a buffer against skyrocketing international diesel prices.

While it is currently a "drop-in" solution for many modern diesel engines, owners of older vehicles should keep an eye on technical requirements, such as fuel line compatibility, as the policy moves closer to reality.

Quick Facts: B100 vs. Standard Diesel

What do you think? Would you switch to "Cooking Oil" fuel to avoid the next global oil crisis? Let us know in the comments!