1. The Ministry of Plantation and Commodities (KPK), through the Malaysian Palm Oil Board (MPOB), has established an 18 month collaboration since February 2025 to implement a pilot project on the use of B20 palm based biodiesel for ground service vehicles at Kuala Lumpur International Airport (KLIA).

2. This collaboration involves MPOB working together with Petronas Dagangan Berhad, Malaysia Airports Holdings Berhad (MAHB), and Teras Kembang Sdn Bhd
to implement the use of B20 palm biodiesel for ground service equipment (GSE) vehicles and machinery.

3. The cooperation between MPOB and the three companies, each acting as the B20 biodiesel supplier, airport operator, and petrol station manager supplying B20 fuel at KLIA, it has completed the entire biofuel supply chain for ground service machinery at the airport.

4. At present, five (5) GSE companies have expressed interest in participating in the pilot project, with a projected green B20 biodiesel usage of 40,000 litres per month.This contributes to a reduction of up to 13 percent in greenhouse gas (GHG) emissions, equivalent to 105 tonnes of carbon dioxide equivalent (CO2e) annually compared to conventional diesel.

5. The International Civil Aviation Organization (ICAO) has set a goal of achieving carbon neutral growth for international airline operators by 2050, based on 2021
carbon emission levels.

6. In line with this effort, KPK through MPOB has actively introduced renewable green energy sources such as palm biodiesel as a mitigation measure focused on reducing carbon emissions in the aviation sector.

7. The Ministry has also set a target for the use of B30 palm biodiesel in the transportation sector by 2030, which is also one of the key performance indicators under the National Agricommodity Policy 2021-2030 (DAKN2030).

8. Life cycle studies on biodiesel also show a reduction of up to 70 percent in GHG emissions compared to conventional diesel. In fact, biodiesel is a sulphur free fuel,
capable of reducing up to 100 tonnes of sulfur in the atmosphere annually under the B20 program.