SAF MALAYSIA KNOWLEDGE CENTRE

Sustainable aviation fuel
in Malaysia and Southeast Asia.

Q: Does SAF eliminate emissions?

No. SAF releases CO 2 when burned. Its benefit comes from lower lifecycle emissions than fossil jet fuel, which vary by feedstock and process.

A guide to how SAF is made, the region’s feedstocks, policies and projects, and the standards that govern them. Every fact links to a public source. The guide is prepared by SAF Malaysia, with NAICO as Founding Knowledge Partner.

LAST UPDATED OCTOBER 2026

01 / WHAT IS SAF?

What is SAF?

Sustainable aviation fuel (SAF) is jet fuel made from renewable or waste-derived feedstocks that meets sustainability criteria. It is a “drop-in” fuel: once blended with conventional jet fuel and certified, it uses today’s aircraft, pipelines and airport fuel systems.

SAF still releases CO₂ when burned. Its climate benefit is measured over the whole lifecycle, from growing or collecting the feedstock to production, transport and combustion. Depending on the feedstock and process, producers report lifecycle reductions of up to about 80% compared with fossil jet fuel. Under ICAO’s CORSIA methodology, each pathway is assessed with defined lifecycle emissions values.

Most approved SAF types can currently be blended up to 50% with conventional jet fuel. Within ICAO’s framework, SAF is one of three main levers for reaching net-zero international aviation by 2050, alongside new aircraft technology and operational improvements.

Sources: ICAO — SAF · ICAO — SAF conversion processes · ICAO — CORSIA lifecycle methodology · Boeing — ASEAN agricultural-waste SAF project · National Energy Transition Roadmap (Ministry of Economy)

02 / WHY IT MATTERS FOR MALAYSIA AND SOUTHEAST ASIA

Why it matters for Malaysia and Southeast Asia

A national target

Malaysia’s National Energy Transition Roadmap (NETR) adopts ICAO’s net-zero 2050 goal for international aviation and proposes up to a 47% SAF blending mandate by 2050. The Malaysia Aviation Decarbonisation Blueprint (MADB) expects SAF to deliver 46.2% of aviation decarbonisation by 2050.

Feedstock potential

Malaysia’s identified feedstocks include palm oil residues, rice residues, used cooking oil (UCO), municipal solid waste and wood residues.

A production base

Malaysia began commercial SAF production in 2025. According to a Malaysian working paper to ICAO, six SAF refineries were in the pipeline across the country.

A regional resource

A 2024 study by the Roundtable on Sustainable Biomaterials (RSB), supported by Boeing, estimates that Southeast Asia’s bio-based feedstocks could produce about 45.7 million tonnes of SAF a year by 2050. That is about 12% of global SAF demand needed for net zero. About 75% could come from agricultural and post-consumer wastes.

The same Malaysian working paper names export positioning, regional hub potential and contributions to ASEAN aviation decarbonisation as opportunities. It names cost competitiveness, feedstock certification, infrastructure readiness and policy alignment as challenges.

Sources: National Energy Transition Roadmap (Ministry of Economy) · CAAM — Malaysian Green Skies Initiative & Action Plan · Malaysia working paper, ICAO 42nd Assembly · RSB — Southeast Asia feedstock study with Boeing

03 / PRODUCTION PATHWAYS

Production pathways

Before SAF can be used, ASTM International must approve its production process. ICAO lists 11 approved conversion processes, with others under evaluation. The main families are:

Pathway	Standard	Typical feedstocks	Max. blend	Status
HEFA (hydroprocessed esters and fatty acids)	ASTM D7566 Annex A2	Used cooking oil, animal fats, vegetable oils and residues	50%	Commercial today; the leading near-term pathway in Malaysia’s NETR
Alcohol-to-Jet (AtJ)	D7566 Annexes A5 and A8	Ethanol or isobutanol from sugars, starches or cellulosic biomass	50% (A5)	Emerging; identified by NETR as having long-term potential
Fischer-Tropsch (FT) and gasification	D7566 Annexes A1 and A4	Municipal solid waste, agricultural and forestry residues	50%	In development at scale; suited to rice straw and MSW
Power-to-Liquid (PtL / e-SAF)	Typically via the FT route (A1)	Renewable hydrogen plus captured CO₂	50%	Emerging. The EU sets a separate synthetic-fuel sub-mandate from 2030.
Co-processing	ASTM D1655 Annex A1	Bio-oils or FT hydrocarbons processed alongside crude in an existing refinery	5% bio-feed (10% for HEFA co-processing)	Used in the region, for example in Indonesia and Thailand
Other approved routes	D7566 A3 (SIP), A6 (CHJ), A7 (HC-HEFA)	Sugars, lipids, algae	10–50%	Niche or emerging

Technology providers

Several companies license HEFA-type technology, including Topsoe (HydroFlex), Honeywell UOP (Ecofining™, co-developed with Eni) and Axens (Vegan®). Some producers, such as Neste and EcoCeres, use their own proprietary processes. SAF Malaysia does not endorse any technology provider. These are listed only to show the range of options.

Sources: ICAO — SAF conversion processes · US DOE AFDC — Sustainable aviation fuel · National Energy Transition Roadmap (Ministry of Economy) · European Commission — ReFuelEU Aviation · Topsoe — SAF solutions · Honeywell UOP — Ecofining · Axens — SAF solutions · RSB — Southeast Asia feedstock study with Boeing · The Nation Thailand — SAF standards and 1% blend · Bisnis.com — Indonesia 1% SAF mandate for 2027 (in Indonesian)

04 / FEEDSTOCKS IN THE REGION

Feedstocks in the region

Used cooking oil (UCO) is today’s main HEFA feedstock in the region. Malaysia’s Ministry of Plantation and Commodities (KPK) is preparing a SAF production strategy, including feedstock assessments and campaigns to collect UCO. Thailand’s first commercial SAF unit runs mainly on UCO.
Palm oil residues, such as palm oil mill effluent (POME) and processing wastes, are identified feedstocks for Malaysia. The NETR notes the debate over palm-derived feedstocks and indirect land-use change. It proposes a study of palm-oil feedstock emissions to make sure any palm oil used for SAF is sourced sustainably.
Agricultural residues. The RSB study ranks rice husks and straw as the region’s most significant sustainable feedstocks. Sugarcane bagasse and cassava could feed AtJ, and municipal solid waste could feed FT.
Waste and residue focus. The Pengerang biorefinery plans to use used vegetable oils, animal fats and waste from vegetable-oil processing, and to explore microalgae oils over the medium term.

Feedstock eligibility differs by market. The EU, the UK and CORSIA each set their own rules on which feedstocks count and how much. A fuel’s value in export markets depends on those rules and on its certification.

Sources: Bernama — Malaysia to start SAF production by end-2025 · National Energy Transition Roadmap (Ministry of Economy) · Malaysia working paper, ICAO 42nd Assembly · RSB — Southeast Asia feedstock study with Boeing · PETRONAS — Pengerang biorefinery FID · The Nation Thailand — SAF standards and 1% blend

05 / POLICY LANDSCAPE

Policy landscape

Malaysia

NETR (2023): proposes an initial 1% SAF blending mandate, incentives for SAF production and infrastructure, a framework to raise mandates over time, and up to 47% SAF blending by 2050.
Malaysia Aviation Decarbonisation Blueprint (MADB, Ministry of Transport, 2024): sets 2050 contributions of 18% from aircraft technology, 5% from operations, 46.2% from SAF and 30.8% from market-based measures. KPK leads implementation of the national SAF blending mandate.
Proposed KLIA mandate: the government has said it is drafting a 1% SAF blending requirement for international flights departing KLIA from January 2027. In the most recent public statements we found (late 2025), implementation details were still being finalised with industry and other stakeholders.
Regulators: the Civil Aviation Authority of Malaysia (CAAM) issued the State Action Plan (Malaysian Green Skies Initiative). CAAM and Malaysia Aviation Group chair a national SAF Task Force set up in 2023. From 1 August 2025, MAVCOM’s functions passed to CAAM under the Malaysian Aviation Commission (Dissolution) Act 2024.
Licensing: SAF plants are licensed under the Malaysian Biofuel Industry Act 2007.

Singapore

CAAS has set a 1% SAF uplift target starting in 2027, with the aim of reaching 3–5% by 2030, depending on global developments. A SAF levy funds central SAF purchasing. It applies to flights departing from 1 January 2027 (tickets sold from 1 October 2026) and varies by distance band and cabin class.

Indonesia

The Ministry of Transportation is preparing a regulation for a 1% SAF mandate from 2027 for international flights, starting at Soekarno-Hatta and Bali (Ngurah Rai). The regulation is targeted for completion by the end of 2026. Officials say Pertamina’s Cilacap refinery is ready to produce SAF through co-processing.

Thailand

From 1 January 2026, Thailand’s Department of Energy Business introduced SAF fuel specifications and an initial 1% blend in Jet A-1, starting at Suvarnabhumi and Don Mueang. Officials said uptake would initially rely on voluntary commitments before any mandatory phase. Later phases aim for 3–5% (2030–2032) and 5–8% (2033 onward).

Philippines

CAAP is developing SAF policy with industry. It held a SAF policy development workshop in March 2026 on feedstock, production technology, regulatory support and investment. Rice and coconut wastes are highlighted as potential feedstocks.

Vietnam

A draft circular from the Ministry of Construction, under consultation in 2026, proposes a minimum SAF share for international departures of 1% from 2030, rising to 10% from 2040. Domestic flights would start later.

Global drivers

ICAO: member states adopted a long-term goal of net-zero international aviation by 2050. At CAAF/3 in 2023, they agreed a collective aspirational goal to cut the CO₂ intensity of international aviation fuel by 5% by 2030 through cleaner energies.
CORSIA: ICAO’s offsetting scheme runs in phases: a pilot phase (2021–2023), a first phase (2024–2026) and a second phase (2027–2035). Participation was voluntary until 2026, and Malaysia volunteered. Airlines can reduce their offsetting obligations with CORSIA-eligible fuels.
EU ReFuelEU Aviation: sets minimum SAF shares at EU airports of 2% from 2025, 6% from 2030, 20% from 2035, 34% from 2040, 42% from 2045 and 70% from 2050, with a synthetic-fuel sub-mandate from 2030.
UK SAF Mandate: 2% of UK jet fuel demand in 2025, rising to 10% in 2030 and 22% in 2040, with a cap on HEFA over time.

Malaysia’s first commercial SAF cargo was exported to Europe. This shows how mandates in export markets drive demand for SAF produced in Southeast Asia.

Sources: National Energy Transition Roadmap (Ministry of Economy) · CAAM — Malaysian Green Skies Initiative & Action Plan · Malay Mail — MADB launch · Bernama — Malaysia to start SAF production by end-2025 · US ITA — Malaysia SAF market intelligence · Malaysia working paper, ICAO 42nd Assembly · CAAM — MAVCOM functions continued by CAAM · CAAS — National SAF target and SAF Levy · Singapore MOT — SAF levy timeline · Bisnis.com — Indonesia 1% SAF mandate for 2027 (in Indonesian) · The Nation Thailand — SAF standards and 1% blend · CAAP — SAF adoption · Asia SAF — Vietnam draft SAF blending mandate · ICAO Global Framework (CAAF/3) · ICAO — CORSIA participation · European Commission — ReFuelEU Aviation · GOV.UK — The SAF Mandate: an essential guide

06 / STANDARDS AND CERTIFICATION

Standards and certification

Two separate checks apply to SAF:

Technical (fuel quality): ASTM D7566 covers synthetic blending components and their blend limits, and ASTM D1655 covers co-processing. Once blended and certified, the fuel is treated as conventional Jet A/A-1.
Sustainability: to count under CORSIA, SAF must meet ICAO’s sustainability criteria and be certified by an ICAO-approved Sustainability Certification Scheme. Exports to the EU need certification under schemes recognised by the EU.

The two main schemes in the region are ISCC (International Sustainability and Carbon Certification, with ISCC EU and ISCC CORSIA) and RSB (Roundtable on Sustainable Biomaterials). Malaysia’s first commercial SAF plant is certified under ISCC for both CORSIA and the EU. PETRONAS’ locally blended SAF delivered to KLIA was ISCC-certified and met CORSIA-eligible fuel requirements.

Sources: ICAO — SAF conversion processes · ICAO — CORSIA sustainability criteria · ICAO — CORSIA eligible fuels · ISCC — certification system · RSB — Roundtable on Sustainable Biomaterials · New Straits Times — Malaysia ramps up SAF production · PETRONAS — first locally blended SAF

07 / KEY PROJECTS AND PLAYERS

Key projects and players

This is a neutral summary of publicly announced projects. Capacities are as stated by the companies or reported in the media. Inclusion does not imply endorsement.

Country	Project / milestone	Details
Malaysia	EcoCeres, Tanjung Langsat (Johor)	HEFA biorefinery producing SAF, HVO and bio-naphtha from waste-based feedstocks. In operation since October 2025, with a nameplate capacity of 420,000 t/yr. It exported its first SAF cargo to Europe in December 2025.
Malaysia	PETRONAS, Enilive and Euglena, Pengerang (Johor)	Final investment decision in July 2024. It is designed to process about 650,000 t/yr of waste and residue feedstocks into SAF, HVO and bio-naphtha, using Ecofining™ technology, and is targeted to start operating in the second half of 2028.
Malaysia	PETRONAS and Malaysia Aviation Group, KLIA	Malaysia’s first locally blended SAF was delivered by pipeline to KLIA in September 2025 for Malaysia Airlines’ Kuala Lumpur–London service. MAG signed a SAF offtake agreement with PETRONAS in 2023, and Malaysia Airlines flew its first SAF flight in 2021.
Singapore	Neste, Tuas refinery	Up to 1 million t/yr of SAF capability within 2.6 Mt/yr of total renewable products capacity. The expansion started operating in 2023.
Thailand	Bangchak, Phra Khanong refinery	Thailand’s first standalone HEFA-SPK SAF unit, rated at 1 million litres a day and running mainly on UCO. Commercial production began in May 2026. PTT Global Chemical also co-processes UCO.
Indonesia	Pertamina, Cilacap refinery	Officials say it is ready to produce SAF by co-processing. Garuda Indonesia (2023) and Pelita Air (2025) have flown with SAF supported by Pertamina.

Sources: EcoCeres — facilities · New Straits Times — Malaysia ramps up SAF production · PETRONAS — Pengerang biorefinery FID · Eni — Pengerang biorefinery FID · Oil & Gas Journal — Pengerang EPCC contract · PETRONAS — first locally blended SAF · Bernama — MAG SAF offtake with PETRONAS · Malaysia Airlines — first SAF flight (2021) · Neste — Singapore refinery · Bangchak — first commercial SAF production · The Nation Thailand — SAF standards and 1% blend · Bisnis.com — Indonesia 1% SAF mandate for 2027 (in Indonesian)

08 / GLOSSARY

Glossary

SAF: Sustainable aviation fuel: renewable or waste-derived jet fuel that meets sustainability criteria.
Drop-in fuel: A fuel that can be used in existing aircraft and fuel systems without modification, once blended and certified.
HEFA / HEFA-SPK: Hydroprocessed esters and fatty acids, the dominant SAF pathway, which uses oils and fats.
AtJ: Alcohol-to-Jet: converts ethanol or other alcohols into jet fuel.
FT: Fischer-Tropsch: turns gasified biomass, waste or synthesis gas into liquid hydrocarbons.
PtL / e-SAF: Power-to-Liquid: synthetic fuel made from renewable hydrogen and captured CO₂.
Co-processing: Processing a small share of bio-feedstock alongside crude oil in a conventional refinery.
HVO: Hydrotreated vegetable oil, also called renewable diesel, which is often produced alongside SAF.
UCO: Used cooking oil.
POME: Palm oil mill effluent, a palm-processing residue.
ILUC: Indirect land-use change: emissions from land conversion caused indirectly by demand for a crop.
LCA: Lifecycle assessment, which measures emissions from feedstock to combustion.
CORSIA: Carbon Offsetting and Reduction Scheme for International Aviation, run by ICAO.
LTAG: ICAO’s Long-Term Aspirational Goal of net-zero international aviation CO₂ by 2050.
Book and claim: A system that lets airlines claim SAF’s environmental attributes without the physical fuel going into their own aircraft.
Offtake agreement: A contract to buy future production, which often supports project financing.
ISCC / RSB: Sustainability certification schemes used for SAF, including for CORSIA.
NETR / MADB: Malaysia’s National Energy Transition Roadmap and Malaysia Aviation Decarbonisation Blueprint.
CAAM / KPK / MOT: Civil Aviation Authority of Malaysia, the Ministry of Plantation and Commodities, and the Ministry of Transport.

09 / FREQUENTLY ASKED QUESTIONS

Frequently asked questions

Is SAF safe to use in today’s aircraft?

Yes. Approved SAF is blended with conventional jet fuel and certified to the same specifications, so it can be used in existing aircraft and fuelling infrastructure. Most approved types can be blended up to 50%.

Does SAF eliminate emissions?

No. SAF releases CO₂ when burned. Its benefit comes from lower lifecycle emissions than fossil jet fuel, which vary by feedstock and process.

Is SAF more expensive than conventional jet fuel?

Yes, today SAF costs more than conventional jet fuel. Malaysia’s Transport Minister cited cost as the biggest challenge when the MADB was launched, and policies such as Singapore’s levy are designed to manage that cost.

Does Malaysia have a SAF mandate?

Not yet in force. The NETR proposes an initial 1% blending mandate, and the government has said it is drafting a 1% requirement for international flights from KLIA from January 2027, with details still being finalised as of the latest public statements (late 2025).

Can palm oil be used for SAF?

Palm oil residues are identified as potential Malaysian feedstocks. Whether palm-derived fuels count depends on the rules in each market and on certification. The NETR proposes further study of palm-oil emissions to support sustainable sourcing.

Why does Europe matter to Malaysian SAF?

EU and UK mandates create guaranteed demand. Malaysia’s first commercial SAF cargo was exported to Europe, which shows how overseas rules can support investment in local production.

Who is SAF Malaysia?

SAF Malaysia is a national platform and working group that makes SAF easier to understand and discuss. NAICO, the National Aerospace Industry Corporation Malaysia, is its Founding Knowledge Partner. This page is for general information and is not investment, legal or technical advice.

Sources: ICAO — SAF · Malay Mail — MADB launch · National Energy Transition Roadmap (Ministry of Economy) · Bernama — Malaysia to start SAF production by end-2025 · New Straits Times — Malaysia ramps up SAF production · CAAS — National SAF target and SAF Levy

10 / SOURCES AND FURTHER READING

Sources and further reading

All facts on this page come from the public sources below, which were accessed in October 2026. External links do not imply endorsement of, or affiliation with, SAF Malaysia. If you spot an error or a development we should add, please write to [email protected].

Sustainable aviation fuelin Malaysia and Southeast Asia.