Malaysia aims to be sustainable aviation fuel hub, but what about low Asian demand?

South China Morning PostCenter-RightEN 1 min read 100% complete by Iman Muttaqin YusofJanuary 27, 2026 at 07:57 AM

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Malaysia aims to become a sustainable aviation fuel (SAF) hub, highlighted by the opening of EcoCeres' SAF plant in Johor. While Malaysia possesses the infrastructure and resources for SAF production, current demand in Asia remains low. EcoCeres anticipates exporting over 50% of its SAF to Europe, where blending mandates drive demand. Industry experts note that European blending rules are the primary driver for SAF purchases. SAF, made from waste fats, is seen as a viable near-term solution for reducing aviation emissions by blending it with jet fuel for use in existing aircraft.

Key Entities & Roles

Key Player Opposition Context

Hong Kong 50% Johor 60% Southeast Asia 60% Matti Lievonen 70% Malaysia ×280% Europe ×280% EcoCeres ×390%

Keywords

sustainable aviation fuel 100% saf 90% aviation emissions 70% malaysia 70% demand 60% europe 60% southeast asia 50% ecoceres 50% jet fuel 40% blending rules 40%