Malaysia has officially entered the global low carbon aviation supply chain following the inauguration of a USD 500 million (MYR 1.96 billion) sustainable aviation fuel (SAF) facility in Tanjung Langsat, Johor state. Developed by renewable fuels producer EcoCeres, this state-of-the-art plant marks a historic milestone as the country’s first commercial-scale SAF production hub.
The refinery holds an annual capacity of 420,000 tons, which is roughly 40% larger than the company’s existing facility in China. It is designed to convert waste-based feedstocks such as used cooking oil and palm oil mill effluent (POME) into high-value products including SAF, renewable diesel, and hydrotreated vegetable oil (HVO). This project serves as a central pillar for the Malaysia Aviation Decarbonization Blueprint and the National Energy Transition Roadmap (NETR). These initiatives aim to reduce the carbon footprint of the aerospace sector while modernizing the commodity sector through a circular economy.
This strategic investment reinforces Malaysia’s standing as a leading SAF producer within ASEAN and a vital gateway for exports to European markets. The initiative is set to drive significant industrial growth with an initial SAF blending target of 1% designed to stimulate market demand. This will foster a robust local supply chain involving small and medium enterprises in logistics and biomass collection. Beyond environmental benefits, the facility directly employs over 300 local technical staff and is expected to generate thousands of auxiliary jobs throughout the broader ecosystem.
(Sources: Ecoceres; The Edge Malaysia)
