In India, BioEnergy Times reported that Malaysia’s efforts to increase the use of sustainable aviation fuel are being slowed by limited policy support and the high cost of production, according to a report by BIMB Securities.
The research house said that while the European Union and the United States have put in place mandatory measures to boost SAF use, Malaysia’s current blending targets remain voluntary and non-binding. This could leave the country in a position where it produces SAF for export without creating enough demand from its own airlines, according to the report.
BIMB Securities pointed out that Malaysia’s policies lack clear requirements and firm timelines, which could delay adoption by domestic carriers and reduce the fuel’s competitiveness, it added.
Malaysia has also acknowledged the importance of SAF and has set a target to produce up to one million tons by 2027.
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