Malaysia Ventures into 2nd Generation Biodiesel, Biojet Fuel Production

Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin said Malaysia has ventured into the production of second-generation biodiesel and biojet fuel, which are expected to be commercialized to the world market in the next four to five years, the Bernama reported on December 13.  A memorandum of understanding (MoU) entered  into by the Malaysian Palm Oil Board, Pengerang Maritime Industries Sdn Bhd, Shanxi Construction Investment Group Co. Ltd., and the Institute of Coal Chemistry, Chinese Academy of Sciences, would see the setting up of a hydrotreated vegetable oil (HVO) plant in Pengerang, she said.

The HVO plant has the potential to produce Sustainable Aviation Fuels (SAF) known as biojet fuels that can be utilized for the aviation industry.  Approximately RM3 billion investment would be needed for the construction of the plant, including land acquisition and infrastructure, Zuraida said, citing the first phase of the plant would have 500,000 tons capacity production per year.  

“This collaboration on HVO plant in Malaysia will further promote growth. I firmly believe that this project would add more value to Malaysian palm oil products by strengthening trade exchanges in high value-added products,” she told a press conference after the MoU signing ceremony on December 13.