The Malaysian Palm Oil Board (MPOB), Pengerang Maritime Industries Sdn Bhd, Shanxi Construction Investment Group Company Limited and the Chinese Academy of Sciences’ Institute of Coal Chemistry have signed of a memorandum of understanding (MoU) to develop the production of second-generation biodiesel and biojet fuels in Malaysia.
Under the terms of the MoU, a hydrogenated vegetable oil (HVO) plant will be constructed in Pengerang. The HVO plant will produce sustainable aviation fuels (SAF) by generating hydrocarbon fuel from palm oil. Construction of the plant requires a total investment of RM3 billion, and includes the cost of land acquisition and infrastructure. Once operational, the first phase of the HVO plant will have a total generation capacity of 500,000 tonnes of biojet fuel annually.
Additionally, the agencies are conducting a feasibility study on second-generation biodiesel and biojet fuels using green energy technology, which is expected to be concluded within the next six months. Construction of the HVO plant will commence thereafter.
