UAE-based Bin Zayed International Group (BZI) and Malaysia’s FatHopes Energy (FHE) have announced a landmark partnership with a MYR 2.19 billion (USD 500 million) investment to establish one of the world’s most advanced sustainable aviation fuel (SAF) refineries in Port Klang, Selangor state. This integrated facility, among the first of its kind in Southeast Asia, is set to redefine the regional clean aviation sector and strengthen Malaysia’s role as a key player in the global SAF market.
The refinery will produce SAF using the HEFA (Hydroprocessed Esters and Fatty Acids) pathway, which currently accounts for over 80% of global SAF production. Scheduled to break ground in 2026 with commercial operations expected by 2029, the facility aims for an initial capacity of 300,000 tons per annum, requiring approximately 330,000 tons of feedstock. The technology will support multiple feedstocks and comply with evolving regulations and certifications. Beyond the core technology, the partnership will explore advanced SAF innovations alongside FHE’s refining and technology partners, focusing on profitability, social impact, and environmental sustainability.
The project is currently in the feasibility stage, with efforts underway to address technical challenges such as sourcing critical inputs like hydrogen and nitrogen and ensuring adequate port infrastructure. Securing environmental clearances and technical readiness are key priorities. This significant investment will act as a catalyst for transformation in Malaysia’s energy and aviation sectors, supporting the country’s climate commitments under the Paris Agreement. It will contribute to decarbonizing aviation, enhancing energy security, creating jobs, and benefiting communities across the biofuel supply chain, ultimately advancing Malaysia’s net-zero ambitions.
(Sources: Fat Hopes Energy; New Straits Times)
