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Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said Malaysia is expected to produce one million metric tonnes of sustainable aviation fuel (SAF) by 2028.
The minister explained that this output will come from two local SAF production facilities, including one currently being developed by Petroliam Nasional Berhad (Petronas).
Malaysia already has an SAF plant with an annual capacity of 350,000 metric tonnes operated by Hong Kong-based EcoCeres, while Petronas is building a facility with a capacity of 650,000 metric tonnes.
Johari told the Senate during a question-and-answer session: “Once both plants are completed in 2028, total SAF production capacity will reach one million metric tonnes.”
He was responding to a supplementary question from Senator Che Alias Hamid on government plans to ensure a stable supply of feedstock to support SAF production.
To secure raw materials over the long term, Johari said the government will halt exports of used cooking oil (UCO) and adopt a circular economy approach in plantation activities to ensure adequate supply.
Separately, he said the government had introduced measures to attract investment into the SAF industry, including streamlining approvals for plant construction licenses, SAF production licenses, and export permits.
He said: “The government will continue to assist and facilitate industry players interested in operating in Malaysia.”
He concluded that these measures send a clear signal of full government support for investors seeking to enter the sustainable aviation fuel industry.
Source: Bernama