Area
Malaysia
Commodity Group
Biofuels
Commodity
Biodiesel
Date
01/11/2019
Policy Category
Renewable energy
Policy Instrument
Biofuel policy
Description
Allocated funds to explore the use of palm oil derivatives as aviation fuel feedstock and approached potential investment partners in overseas. The initiative would address the expansion in demand for bio-jet fuels expected to arise from the International Civil Aviation Organizations policies favouring a higher presence of renewable feedstock in aviation fuel.
Notes
MALAYSIA biofuel policy: With a view to foster domestic palm oil uptake, Malaysia envisages to start producing palm oil-based jet-fuel within five years, local media reported. To achieve this goal, in its FY 2020 budget, the Government set aside funds to explore the use of palm oil derivatives as aviation fuel feedstock. In the meantime, the Malaysian Palm Oil Board has approached potential investment partners in China, Japan and the United States (see also MPPU May19). While bio-jet fuels will be needed to reduce carbon footprints, their production comes with additional costs and complexities hence the need for more research and development before moving into commercial production. Meanwhile, demand for bio-jet fuel is expected to expand, considering that the International Civil Aviation Organization ICAO (the UNs standards setting body for civil aviation) is aiming for a significant share of renewable fuel in total aviation fuel by 2050.
