4th Nov 2014 14:22
LONDON (Alliance News) - Graphene NanoChem PLC Tuesday said the Malaysian government has increased the biodiesel blending requirement which will increase domestic demand for its PlatAmber biofuel product.
The Malaysian biodiesel blending requirement has moved from the B5 mandate, to the B7 mandate from the beginning of November. The B7 mandate requires a blend of 7% of palm methyl ester with 93% of diesel petroleum, an 5% increase from the requirements under the B5 mandate, it said in a statement.
Malaysia currently consumes around 340,000 tonnes of biofuels per year under the B5 mandate, and the implementation of the B7 mandate by the government of Malaysia will see a domestic volume requirement of around 570,000 tonnes per year, a 230,000 tonne increase.
Platinum NanoChem, the company's wholly-owned subsidiary currently sells PlatAmber, the group's biofuel product derived from palm waste for the Malaysian market to tier 1 oil and gas companies. The B7 mandate, and the increased demand it will create is expected to drive further sales of PlatAmber for the company, it said in a statement.
"We are pleased to announce the latest government initiative driving the use of environmentally friendly energy sources and look forward to supporting the requirement for PlatAmber under the Malaysian B7 mandate," said Chief Executive Jespal Deol.
Graphene NanoChem shares were down 2% to 49.00 pence per share Tuesday afternoon.
By Joshua Warner; [email protected]; @JoshAlliance
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