How EcoCeres' New Malaysian Plant Fuels Asia's Sustainable Aviation Future
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Hong Kong-rooted EcoCeres launched Malaysia's first Sustainable Aviation Fuel (SAF) plant in Johor, producing 420,000 tonnes/year of SAF, HVO, and Renewable Naphtha.
Key Takeaways
- •EcoCeres officially launched Malaysia's first SAF plant in Pasir Gudang, Johor, on January 26, 2026.
- •The facility produces SAF, HVO, and Renewable Naphtha with a combined maximum capacity of 420,000 tonnes per year.
- •The plant utilizes proprietary waste-to-fuel technology, supporting Malaysia's net-zero goals and strengthening Hong Kong's role as a green finance hub.
- •The launch significantly boosts Asia's regional SAF supply, a critical step for aviation decarbonisation and meeting IATA targets.
Hong Kong-rooted renewable fuels producer EcoCeres Inc. has officially launched Malaysia's first Sustainable Aviation Fuel (SAF) production facility.
Located in Pasir Gudang, Johor, the state-of-the-art plant marks a historic milestone for the country and the wider region. The new facility will significantly boost Asia's supply of sustainable fuels, which are critical for aviation decarbonisation efforts.
A New Regional Hub for Sustainable Fuel
The Johor facility has a combined maximum production capacity of 420,000 tonnes per year. This capacity includes Sustainable Aviation Fuel (SAF), Hydrotreated Vegetable Oil (HVO), and Renewable Naphtha.
Commissioning and start-up of the plant were successfully completed in October 2025. The official launch ceremony took place on January 26, 2026.
EcoCeres' proprietary waste-to-fuel technology drives the plant's operations. This process converts low-value feedstocks, such as used cooking oil and wastewater from palm oil mills, into high-value sustainable fuels.
Strengthening Hong Kong and Malaysia's Green Roles
The project aligns with Malaysia's National Energy Transition Roadmap. It supports the country's national goal of achieving net-zero emissions by 2050.
For Hong Kong, the launch reinforces its strategic position as a regional hub for green innovation and sustainable energy investment. EcoCeres, incubated by Hong Kong public utility Towngas, serves as a prime example of a local company scaling climate solutions globally.
Including its existing Zhangjiagang plant in China, EcoCeres now has a total global renewable fuels capacity of approximately 770,000 tonnes per year.
Impact on Asia's Aviation Sector
The availability of regionally produced SAF is a major development for Asian airlines. The aviation industry faces increasing pressure to meet ambitious decarbonisation targets set by international bodies like IATA.
- Supply Security: The new plant provides a crucial, reliable source of SAF in Southeast Asia, helping to reduce reliance on imports.
- Regulatory Alignment: The increased supply supports countries like Thailand, which has introduced a SAF mandate starting at 1% in 2026.
- Industry Investment: The launch follows significant regional investment, such as the joint agreement between Cathay Pacific and Airbus to accelerate SAF development in Asia.
The facility's production of Hydrotreated Vegetable Oil (HVO) and Renewable Naphtha also supports the decarbonisation of maritime, transportation, and industrial sectors. The first SAF cargoes from the plant were exported in mid-December 2025, demonstrating immediate operational impact.
Challenges and Opportunities
While the launch is a major step, the industry still faces challenges. The cost of SAF remains significantly higher than traditional jet fuel. However, the use of waste and residue feedstocks at the Johor plant helps to mitigate sustainability concerns related to land use.
This facility's success is a model for how regional commitment and supportive government policies can accelerate the global search for climate solutions. It represents a tangible step toward a more sustainable future for commercial aviation in Asia.
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Written by Ujjwal Sukhwani
Aviation News Editor & Industry Analyst delivering clear coverage for a worldwide audience. Covers flight operations, safety regulations, and market trends with expert analysis.
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