---
title: Palm Oil Waste-to-Sustainable Aviation Fuel
type: technology
url: "https://www.envisioning.com/research/grid/southeast-asia__palm-oil-sustainable-aviation-fuel"
hub: grid
summary: "Malaysia's Petronas and palm oil producers are manufacturing SAF from palm oil waste, with EcoCeres' 350K-tonne Johor biorefinery already shipping to Europe."
---

# Palm Oil Waste-to-Sustainable Aviation Fuel

Malaysia's Petronas and palm oil producers are manufacturing SAF from palm oil waste, with EcoCeres' 350K-tonne Johor biorefinery already shipping to Europe.
- Technology Readiness Level: 7/9
- Impact: 3/5
- Investment: 4/5
Malaysia — Petronas is collaborating with major palm oil producers to manufacture sustainable aviation fuel (SAF) from palm oil mill effluent (POME) and other waste streams. EcoCeres commenced commercial SAF production at its Johor biorefinery in October 2025, with 350,000 tonnes annual capacity, already shipping to European airlines.

Malaysia is the world's second-largest palm oil producer, generating enormous quantities of waste biomass (empty fruit bunches, POME, palm kernel shells) that are either underutilized or create environmental problems. Converting this waste to SAF simultaneously addresses aviation decarbonization, palm oil sustainability concerns, and rural economic development. The 2025 budget included specific incentives linking fuel subsidy reform to downstream biofuel production.

The global SAF market is projected to reach $15 billion by 2030, driven by EU mandates requiring 6% SAF blending by 2030. Malaysia's combination of feedstock abundance, existing refining expertise (Petronas), and strategic location on major aviation routes positions it as a potential SAF export leader — if it can resolve RSPO sustainability certification challenges for palm-derived fuels.

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Source: Envisioning — Technology Research Institute (https://www.envisioning.com/research/grid/southeast-asia__palm-oil-sustainable-aviation-fuel)