In a move to accelerate Malaysia’s role in the global shift toward sustainable aviation, FatHopes Energy Sdn Bhd (FHE), the country’s pioneer in biofuel feedstock aggregation, has partnered with Denmark-based Topsoe, a leader in carbon reduction technologies. The two companies have signed a Memorandum of Understanding (MoU) to explore the development of a sustainable aviation fuel (SAF) refinery in Malaysia, utilizing waste-based renewable feedstocks.
Under the agreement, the proposed facility will process used cooking oil (UCO) and other waste-derived oils to produce advanced aviation biofuels, contributing to the decarbonization of the aviation sector. The initiative is aligned with global sustainability targets and Malaysia’s growing ambition to establish itself as a renewable energy hub.
Feasibility Study and Technological Collaboration
As part of the MoU, Topsoe will bring its cutting-edge technology and engineering expertise to assess the viability of establishing the refinery. The first phase will involve a comprehensive feasibility study that will evaluate Malaysia as an optimal location for SAF production, taking into account regulatory frameworks, feedstock availability, and commercial viability.
FatHopes Energy, leveraging its extensive feedstock aggregation network, will ensure a steady supply chain of waste-based raw materials for SAF production. The refinery, once operational, could either be managed directly by FatHopes Energy or licensed to a third-party operator for commercialization.
Strengthening Malaysia’s Renewable Energy Leadership
This collaboration was announced ahead of the 36th Palm & Lauric Oils Price Outlook Conference & Exhibition (POC2025) in Kuala Lumpur, highlighting Malaysia’s efforts to lead in the development of sustainable energy solutions. As one of the world’s largest producers of palm oil, Malaysia has the potential to integrate palm oil mill effluent (POME) into SAF production, provided it meets international sustainability certification requirements.
Beyond supporting domestic aviation fuel needs, the SAF refinery could position Malaysia as a key supplier for international markets, reinforcing its commitment to reducing greenhouse gas emissions in line with global climate goals.
By leveraging advanced biofuel technologies and strategic industry partnerships, Malaysia is setting the stage for a cleaner, more sustainable aviation sector, contributing to the broader push for carbon-neutral energy solutions.
