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Sunflower Oil — FOB Black Sea
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NewsOils and Fats Sector Coverage

South Korean Firm Eyes Used Cooking Oil Plant In Malaysia For Sustainable Aviation Fuel

Fats and oils processing
August 20, 2026
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زيت النخيل أصبح وقودا لسيارات السباقات

Kuala Lumpur - South Korea's JC Chemical Co Ltd, a company specialising in renewable energy, has expressed strong interest in setting up a plant in Malaysia to process refined used cooking oil (UCO) and convert it into sustainable aviation fuel (SAF).

Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz said the project aligns closely with Malaysia's National Energy Transition Roadmap and the New Industrial Master Plan 2030 (NIMP 2030). In a post on social media platform X on Monday, Zafrul said: "This project will also position Malaysia as a regional hub for SAF feedstock production, significantly strengthening the country's biofuel value chain."

Malaysia Moves Toward Becoming A Regional Hub For Sustainable Aviation Fuel

The move comes as earlier reports indicated that Malaysia is expected to begin domestic production of sustainable aviation fuel before the end of 2025, with Ecoceres Renewable Fuels Sdn Bhd set to commence commercial operations in Tanjung Langsat, Johor.

To support this push, the Malaysian government has streamlined the licensing process under the Malaysian Biofuel Industry Act 2007. The move is aimed at facilitating the development of sustainable aviation fuel production plants and supporting the necessary infrastructure, including storage, blending, transport and distribution facilities.

Sustainable aviation fuel (SAF) is an environmentally friendly alternative to conventional jet fuel, produced from renewable sources such as used cooking oil or agricultural waste, helping to reduce the carbon footprint of the global aviation sector.

Source: The Edge Malaysia