Implementation Of One Per Cent SAF Mandate Deferred To 2030 - Noraini

KUALA LUMPUR, Nov 5 (Bernama) – The implementation of the one per cent sustainable aviation fuel (SAF) blending mandate will be deferred to 2030, said the Plantation and Commodities Ministry (KPK).

Its Minister, Datuk Seri Dr Noraini Ahmad, said the postponement will give the aviation industry time to prepare and adapt its respective operations.

The revised timeline will allow the Civil Aviation Authority of Malaysia (CAAM) to develop an appropriate regulatory framework to ensure the mandate proceeds in an orderly and effective manner later on, she said.

"KPK will continue to work closely with the Transport Ministry (MOT), CAAM and industry stakeholders to ensure that the development of the country's SAF ecosystem remains on track.

"The move reflects the government's balanced approach of continuing to strengthen the country's SAF industry while ensuring the sustainability of the aviation sector and preserving Malaysia's competitiveness," she said in a statement today.

She also said the government is mindful of current geopolitical developments affecting global energy markets, specifically the rise in jet fuel prices resulting from armed conflicts.

"This situation has posed challenges to the aviation industry in the form of rising operating costs and financial pressures," she said.

Yesterday, Noraini said KPK held several engagement sessions with stakeholders to plan the implementation of the one per cent SAF blending mandate for international flights departing from Kuala Lumpur International Airport (KLIA), originally scheduled to commence in January 2027.

According to Noraini, Malaysia has entered the commercial production phase of SAF through the operations of the EcoCeres plant in Johor, which commenced in October 2025, with a licensed capacity of 420,000 metric tonnes per year.

Meanwhile, the PETRONAS-Enilive-Euglena biorefinery in Pengerang, Johor, is expected to commence operations in the second half of 2028, with a processing capacity of 650,000 metric tonnes per year.

"The two projects are expected to provide a combined production capacity of more than one million metric tonnes annually by 2028. This will indirectly strengthen Malaysia's position as a regional SAF production hub," she added.

-- BERNAMA