Malaysia’s Federal Land Development Authority (Felda) is aggressively working on ways to find new sources of income for its settlers, with sustainable aviation fuel (SAF) as an alternative source of revenue.
Its chairman Datuk Seri Ahmad Shabery Cheek acknowledged there were “serious discussions” about SAF, as airlines worldwide start reducing their carbon footprints.
“A foreign company expressed interest in importing our waste from the crude palm oil and turning it into aircraft fuel. I told them they shouldn’t take it out, and if they are interested, they should set up their operations here (in Malaysia),” said Ahmad Shabery.
“We are extremely keen to explore SAF. This is the future as I won’t be surprised if airlines will soon be judged based on the amount of SAF they use.”
The United Kingdom government recently said it wanted to boost production and the use of SAF by introducing a rule that at least 10 per cent of aircraft fuel is made using sustainable materials by 2030.
Deputy Investment, Trade and Industry Minister, Liew Chin Tong, last month, urged the palm oil industry to explore repurposing residuals as a crucial feedstock for SAF, moving beyond the traditional uses of palm oil.
However, Ahmad Shabery stressed there must be policies and regulations if Malaysia was serious in developing the production of SAF.
“When you have policies and regulations, then the business will be clearer. The technology will be a secondary conversation, as when the rules of the game are clear, we can then collaborate with experts in Malaysia and beyond.”
Ahmad Shabery has been championing biomass, as he sees it as a new source of revenue for Felda settlers, and the organisation.
In June, Frankfurt Airport operator Fraport chief executive officer, Stefan Schulte, said SAF producers in Europe cannot increase output fast enough to meet the European Union’s (EU) needs.
The EU implemented a quota that will require airlines to use 70 per cent SAF by 2050. The price of SAF has been cited as one of the reasons for the slow uptake, as it costs more than traditional fuel.
