PUTRAJAYA: Petronas is set to produce Sustainable Aviation Fuel (SAF) domestically by 2028, says Transport Minister Anthony Loke.
He said the use of SAF was crucial to Malaysia's goal of achieving net zero carbon emissions by 2050.
He said that no airlines in Malaysia currently use SAF due to high costs and limited production, but added that SAF was a low-carbon alternative to conventional jet fuel, offering a significant way to reduce the aviation sector's carbon footprint.
"Petronas is leading the effort to produce SAF and has already started planning and developing strategies for its production. I've been informed that Petronas could begin production as early as 2028, with full-scale operations anticipated within the next three to four years," he said at the launch of the Malaysian Aviation Sector Decarbonisation Roadmap (MADB) here, today.
Also present was Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad.
The MADB outlines a strategic framework to drive the green economy and decarbonise the aviation sector by 2050.
It includes measures to reduce emissions through aircraft technology, operational improvements, SAF use, and carbon offsetting, following the guidelines set by the International Civil Aviation Organisation (ICAO).
Earlier in his speech, Loke said SAF was crucial to cutting aviation emissions.
He said the development of a national strategy for SAF production and use would be led by the Plantation and Commodity Ministry and the Ministry of Investment, Trade, and Industry, in line with the National Energy Transition Roadmap (NETR) and the New Industry Master Plan (NIMP) 2030.
Loke also called for a National Carbon Market Strategy to support the country's broader decarbonisation goals, spearheaded by the Natural Resources and Environmental Sustainability Ministry.
On July 26, Petronas, along with foreign partners Enilive (Italy) and Euglena (Japan), announced a final investment decision to develop a biorefinery within the Pengerang Integrated Complex (PIC) in Johor.
This joint venture will allow Petronas Mobility Lestari Sdn Bhd and Enilive, the largest shareholders, to produce SAF and other biofuels like renewable diesel and hydrogenated vegetable oil (HVO).
The biorefinery is expected to be operational by the second half of 2028, positioning Malaysia as a key player in the growing global demand for SAF and other sustainable biofuels.
Previously, Petronas and Idemitsu Kosan signed a memorandum of understanding to enhance capabilities across the supply chain and optimise the route to market for SAF.