Malaysia, Chinese Firms Venturing Into Second-Generation Biodiesel, Biojet Fuel

The Malaysian government has partnered with China’s state-owned Shanxi Construction Investment Group to produce second-generation biodiesel and biojet fuel.

On Monday, the Malaysian Palm Oil Board signed a memorandum of understanding (MoU) with Shanxi as the Chinese firm plans to invest in a hydrogenated vegetable oil (HVO) plant in the Malaysian state of Johor.

The MoU also involves the Pengerang Maritime Industries and the Chinese Academy of Sciences.

HVO, or second-generation biofuel, “has the potential to produce Sustainable Aviation Fuels which is also known commonly as biojet fuels,” the ministry said.

About RM3 billion ($712.25 million) in investment will be needed to build an HVO plant that will produce 500,000 tons of output per annum, according to the ministry. The venture is also expected to create up to 800 jobs.

Plantation Industries and Commodities Minister Datuk Zuraida Kamaruddin said that Malaysia will be able to take advantage of having the world’s second-largest palm oil industry in venturing into biofuels.

Production will be primarily used to supply China, one of Malaysia’s major palm oil importers, but output will also be exported to other major economies like Europe and the United States.

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