KUALA LUMPUR: Malaysia, as the second-largest palm oil producer globally, is strategically positioned to become one of the world's leading producers of Sustainable Aviation Fuel (SAF).
Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani said aside from the country's commitment to achieving net-zero carbon emissions by 2050, SAF also holds significant potential for the national economy, particularly in enhancing the implementation of a circular economy.
"The use of SAF is one of the initiatives introduced to meet the International Civil Aviation Organisation's goal of reducing carbon emissions in the aviation sector by five per cent by 2030.
"The government plans to make this initiative mandatory starting in 2027. Malaysia is expected to begin sustainably producing SAF in 2027.
"(And) production capacity will be gradually increased based on the capacity of production plants and the availability of feedstock, in line with Malaysia's agenda to strengthen its position as a SAF producer in Southeast Asia," he said during the minister's question time in the Dewan Rakyat today.
Johari (BN-Titiwangsa) said this in response to Khairil Nizam Khirudin (PN-Jerantut) who inquired about the government's target and strategy to position Malaysia as a regional leader in SAF production, particularly given the country's potential for bio-feedstock.
Johari added that in line with the Malaysia Aviation Decarbonisation Blueprint, the ministry was also working with the Investment, Trade and Industry Ministry to develop the National Strategy for SAF to support the growth of the country's SAF production and usage industry.
He said the government would expand the implementation of the used cooking oil collection awareness programme nationwide, in collaboration with Petronas.
"This awareness programme is crucial in ensuring that the SAF production industry has a sufficient supply of raw materials in the country."
Meanwhile, he added that renewable fuel producer EcoCeres Renewable Fuels Sdn Bhd was in the process of constructing a SAF refining and production plant in Tanjung Langsat, Johor, with an annual production capacity of 350,000 metric tonnes.
"Petronas will also build a SAF refining and production plant through a collaboration with Italy's Enilive and Japan's Euglena in Pengerang, Johor, with an annual production capacity of 650,000 metric tonnes."