Bin Zayed Invests US$500 Mln In Aviation Fuel Refinery Project 

KUALA LUMPUR, April 25 (Bernama) -- Bin Zayed International (M) Bhd (BZI) will invest US$500 million to develop a sustainable aviation fuel (SAF) refinery – the world’s first integrated facility in Port Klang – which will set to position Malaysia at the forefront of clean aviation fuel production.

BZI managing director and Bin Zayed (S) Pte Ltd executive director Datuk Seri Dr Shamir Kumar Nandy said the refinery, developed in collaboration with FatHopes Energy Sdn Bhd (FHE), is expected to break ground in 12 months, following the necessary regulatory approvals and project readiness milestones.

“The estimated amount required for the refinery is about US$500 million. We are underwriting the entire sum for now,” he told the media after a signing ceremony between Bin Zayed International and FatHopes Energy.

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Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad witnessed the signing.

The project will advance in phases over the next 12 months, with commercial operations targeted for 2029.

The refinery will be supported by feedstock, or materials, aggregated on the FHE digital system that will act as the backbone for reliable traceability credentials. 

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Shamir Kumar also confirmed that BZI is in the process of acquiring an equity stake in FHE. The final percentage and valuation are being negotiated.

“Our commitment is to take up the entire investment for the building of the refinery. What that equates to in terms of equity will be determined along the way,” he said. 

On its participation in the SAF space, Shamir Kumar said the partnership signifies Bin Zayed’s deeper entry into the renewable energy space in Malaysia and regionally, adding that Malaysia offers the right environment to be globally competitive in SAF production.

FHE chief executive officer Vinesh Sinha said the refinery is designed for a production capacity of 300,000 tonnes of SAF annually, requiring about 330,000 tonnes of feedstock.

“We are currently in the feasibility stage. The plant will be capable of processing multiple waste and residue materials, including used cooking oil,” he said.

Vinesh highlighted that the industry is highly reliant on government mandates but expressed confidence that the collaboration with Bin Zayed would help overcome such hurdles.

“Through the Bin Zayed Group, I'm fairly confident that we will have access to more than just Malaysia. There's a strong footprint across the Middle East, which is another region that is looking seriously at decarbonisation,” he said. 

Nik Nazmi, in his keynote address, said the partnership will be in line with Malaysia’s vision to be at the forefront of the SAF industry. 

“We have the National Energy Transition Roadmap, which targets a 47 per cent SAF blend by 2050, beginning with a one per cent mandate. It also supports the Malaysia Aviation Decarbonisation Blueprint and the Malaysian Green Skies Initiative Action Plan,” he said.

The BZI-FHE partnership exemplifies the leadership needed for Malaysia to lead in the clean energy and SAF production sectors.

-- BERNAMA