Since the 1980s, MPOB (then PORIM) has been in the forefront of R&D in palm biodiesel and its downstream product applications. The MPOB palm biodiesel technology has since been successfully tested on a pilot scale and commercialized by transfer of technology. To date, 18 palm biodiesel plants have been built in Malaysia and eight are currently in operation. With the declaration of the National Biofuel Policy in March 2006, the Malaysian Government has announced that starting from February 2009, the usage of a mandatory B5 biodiesel blend (5% palm biodiesel and 95% petroleum diesel) by all sectors in selected government agencies will take effect. This will be followed by nationwide implementation by 2010. The implementation of the mandatory blending of B5 biodiesel has called for a higher supply of palm biodiesel.