Malaysia aims to be sustainable aviation fuel hub, but what about low Asian demand?
AdvertisementMalaysiaThis Week in AsiaEconomicsMalaysia aims to be sustainable aviation fuel hub, but what about low Asian demand?Most of the demand still comes from Europe, with Malaysia aiming to produce 1 million tonnes of sustainable aviation fuel by 2028
Reading Time:3 minutesWhy you can trust SCMPIman Muttaqin YusofPublished: 2:57pm, 27 Jan 2026When Hong Kong-based EcoCeres opened Malaysia’s first commercial-scale sustainable aviation fuel plant in Johor on Monday, officials pitched it as a new export segment positioned for strong growth, backed by the country’s ports, processing capacity and palm-adjacent supply chains.The problem is that the biggest buyers are still not in Asia, EcoCeres says.
“The major part of the demand is in Europe,” EcoCeres CEO Matti Lievonen told reporters at a press conference, adding that “absolutely much more than 50 per cent” of the plant’s output would go to the European market because demand in Malaysia and much of the region was still thin.
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