European buyers show no negative perception of palm oil as sustainable aviation fuel, says Johari Ghani

There is no negative perception among European buyers regarding the suitability of palm oil as a feedstock for sustainable aviation fuel (SAF), said Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.

The minister said used cooking oil (UCO), the primary feedstock for SAF, is highly rated in Europe and recognised as a high-quality raw material.

“Malaysia also has the Malaysian Sustainable Palm Oil (MSPO) certification, which ensures that every metric ton of palm oil is sustainably produced and instils confidence in international markets,” he added.

Johari made the remarks to reporters following a visit to the country’s first SAF biorefinery, Ecoceres Renewable Fuels Sdn Bhd, in Tanjung Langsat, Johor.

Earlier reports had raised concerns about the suitability of palm oil as an SAF feedstock, particularly due to negative perceptions among European buyers over deforestation and environmental sustainability.

He said Malaysia, as the world’s second-largest palm oil producer, has an advantage in raw material supply for the SAF industry.

“The SAF initiative is also part of Malaysia’s strategy to reduce greenhouse gas emissions and can be considered a low-carbon business activity,” he said.

Johari added that the ministry has been actively engaging stakeholders and working with the Ministry of Transport to develop a national SAF blending mandate, with plans to introduce an initial 1% SAF blending requirement for flights departing from the Kuala Lumpur International Airport.

“Since July 2023, the ministry, together with PETRONAS Dagangan Bhd (KL:PETDAG), has organised awareness programmes to promote UCO collection.

“As of September this year, more than 1,200 tonnes of UCO have been collected from nearly 66,000 customers at 89 selected Petronas petrol stations nationwide,” he said.

The Ecoceres plant in Johor is Malaysia’s first SAF biorefinery, with a licensed capacity of 350,000 metric tons per year, and began producing SAF last month.