Malaysia in talks with partners to produce palm oil-based bio-jet fuel

Malaysia is looking for new markets to boost demand for the vegetable oil. (Reuters)
Updated 21 November 2019

Malaysia in talks with partners to produce palm oil-based bio-jet fuel

  • Malaysia, the world’s second biggest producer of palm oil

KUALA LUMPUR: Malaysia aims to start producing palm oil-based bio-jet fuel within five years and is in talks with several potential partners about setting up a plant, the head of the industry’s marketing board said on Wednesday.

Malaysia, the world’s second biggest producer of palm oil, is looking for new markets to boost demand for the vegetable oil, widely used in everything from soap to lipstick to snack foods.

Ahmad Parveez Ghulam Kadir, director general of the Malaysian Palm Oil Board (MPOB), said Malaysia was exploring “all possibilities” with potential investors as it expected demand for bio-jet fuel to grow in the coming years.

Last month, Malaysia allocated funds in its 2020 budget to study the use of palm oil-based bio-jet fuel.

“In five years, we hope we can have our first bio-jet production in Malaysia,” Ahmad Parveez told Reuters in an interview on the sidelines of an industry conference. MPOB is a state agency responsible for the promotion and development of palm oil. He did not name the potential investors or say who would fund a plant.

In April, the Malaysian Palm Oil Council in Beijing signed a memorandum of understanding with Chinese industry body the China Chamber of Commerce of Foodstuffs and Native Produce that would see China invest at least 2 billion ringgit ($480 million) in a Malaysian bio-jet fuel plant. However, Ahmad Parveez said on Wednesday that was not a final agreement and that discussions with all potential partners were at a preliminary stage.

Malaysia’s interest in producing bio-jet fuel comes as global airlines look to reduce emissions from flying to comply with a plan by the International Civil Aviation Organization (ICAO), the UN body that sets standards for international air travel.

The plan, known as Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), looks to cap CO2 emissions from air travel at 2020 levels, mitigating the environmental impact of flying even as passenger traffic is forecast to grow.

Indonesia, the top producer of palm oil, is also eyeing aviation as a new market for palm oil. Indonesian President Joko Widodo in August asked his ministers to study further the possibility of mixing palm oil-based fuel with jet fuel.

MPOB’s Ahmad Parveez also said Malaysia's palm oil production will not exceed 20 million tons in 2019 and 2020, compared with 2018 output of 19.5 million tons.

Indonesia and Malaysia will both see little growth in output next year, potentially leading to a supply deficit and higher prices, leading industry analyst James Fry said on Wednesday.


Japan’s ANA Holdings says buying 20 more Boeing 787 Dreamliners

Updated 25 February 2020

Japan’s ANA Holdings says buying 20 more Boeing 787 Dreamliners

  • The price tag for the purchases was not disclosed
  • Planes expected to go into service between financial years 2022 and 2025

TOKYO: Japan’s ANA Holdings said Tuesday it will buy 20 new Boeing 787-10 and 787-9 aircraft, with the planes expected to go into service between 2022 and 2025.
The order will be made up of 11 787-10 aircraft, which will serve domestic routes, and nine 787-9 planes for international destinations.
The price tag was not disclosed.
All Nippon Airways has been gradually replacing its Boeing 777s with 787s, citing better fuel efficiency and a reduction in noise emissions.
Once all 20 of the newly ordered planes go into service, ANA will operate some 103 787s, the firm said.
“Boeing’s 787s have served ANA with distinction, and we are proud to expand our fleet by adding more of these technologically advanced aircraft,” said Yutaka Ito, executive vice president of ANA and ANA Holdings, in a statement.
“These planes represent a significant step forward for ANA as we work to make our entire fleet more eco-friendly and to reduce noise output,” Ito added.