BANGI, June 17 (Bernama) -- The B5 mandate implementation in June next year is taking into account amount of time to set up blending facilities for palm biodiesel, Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said Thursday.

"I think the date we have picked is taking into account the amount of time required by oil companies to set up the blending facilities, which I think they are doing now and will only be ready by June next year," he told reporters after officiating the Transfer of Technology Seminar 2010 here today.

Malaysia, the second-largest palm oil producer, will make the use of the B5 blend, a mixture of five per cent palm oil and 95 per cent diesel, mandatory in the central region from June next year.

The mandatory sale will be implemented in phases beginning in Kuala Lumpur, Selangor, Putrajaya, Negeri Sembilan and Melaka, and the southern, western and northern parts of Perak, Pahang and Johor.

Asked whether the European Union Renewable Energy Directive (EU RED) guidelines to tighten criteria on imports of palm biodiesel into Europe will affect local biodiesel exporters, Dompok said his ministry was looking into the matter.

"We are looking at exactly what is the objection and work from there. But I have received correspondence from the EU saying that they are interested to work alongside countries like Malaysia in this industry," he said.

The European Commission on June 10 adopted guidelines to implement the EU RED which forms part of its 2008 climate and energy package.

The adopted package gives clear guidance to Malaysian palm oil producers on what they need to do to meet the EU's sustainability criteria for biofuels, including palm-based biodiesel.

On the projection for palm oil prices, Dompok said there won't be any drastic change in prices, adding that he agreed with some players who expected the palm oil prices to be range-bound.

On the seminar organised by the Malaysian Palm Oil Board (MPOB), he said it was an important forum to discuss commercialisation of new research findings and technology in the oil palm industry.

For the industry to move up and remain as a pillar of the country's economy, the minister said it must improve its efficiency in terms of productivity, quality and creating new growth areas to be competitive in the global market.

"Hence, the important step for the industry to enhance productivity and performance is to adopt new innovation and technology and systematic management," he said.

Dompok also witnessed the signing of agreement for research collaboration and commercialisation between MPOB and two companies, Global Green Synergy Sdn Bhd and Ancom Crop Care Sdn Bhd.

The first agreement with Global Green Synergy was to develop a process system and formulation for the commercial production of biomass briquette from empty fruit brunches and shell.

The second agreement with Ancom Crop Care was to develop formulation and commercialisation of palm-based adjuvants and herbicide products.

-- BERNAMA