Malaysia to produce sustainable aviation fuel from 2027

KUALA LUMPUR, November 26, 2024 – Malaysia plans to launch production of sustainable aviation fuel (SAF) from palm oil in 2027, Reuters reported on Monday.

The country will initially produce 1 million tonnes per year, Minister of Plantation and Commodities Johari Abdul Ghani was quoted as telling parliament, with volumes set to increase in line with factory availability.

The minister highlighted Malaysia’s position as the second-largest palm oil producer worldwide, saying the country could become a leading SAF producer.

The initial production will come from two plants currently under construction by local player EcoCeres Renewable Fuels and Petronas, in partnership with Enilive and Euglena. The plants will have capacities of 650,000 and 350,000 tonnes per year.

The government in 2023 published its National Energy Transition Roadmap, which targets a 47% SAF blend by 2050.

Looking to the future, the minister said tax incentives to attract SAF investors to the country are under consideration, and exports may be part of the picture.

Photo courtesy of EcoCeres.

Read our latest insights on: