Bin Zayed International (BZI) has inked a deal with FatHopes Energy (FHE) to invest an estimated US$500 million (approximately RM2.19 billion) in a sustainable aviation fuel (SAF) refinery plant to be built in Port Klang, Selangor.
The plant, set to break ground 12 months from today, is said to be the world’s first integrated SAF refinery.
BZI Malaysia managing director Shamir Kumar Nandy said the company was also negotiating for a stake in FHE.
“At the moment, we are still negotiating the percentage that we would acquire.
“However, moving forward, our commitment is to take up the entire investment for the building of the refinery,” he told reporters after the signing ceremony here today.
FHE CEO Vinesh Sinha said the refinery plant would have a SAF production capacity of 300,000 tonnes per annum, requiring 330,000 tonnes of feedstock.
He said the feedstock, sourced from Southeast Asia and beyond, would be mainly waste and residue from used retail and commercial cooking oils.
He said once the oil had been refined into SAF, it would be introduced to the domestic market.
Vinesh said FHE was currently focused on obtaining the necessary approvals from the government before the construction of the plant, while navigating other challenges such as sourcing for input materials like hydrogen and nitrogen for the refinement process.
The project, set to advance in phases over the next 12 months, aims for a final investment decision by mid-2026, with commercial operations targeted for 2029.
The ceremony was also attended by BZI chairman Sheikh Khaled Zayed Saquer Zayed Alnahyan and natural resources and environmental sustainability minister Nik Nazmi Nik Ahmad.
Nik Nazmi said the collaboration between BZI and FHE positioned Malaysia as a frontrunner in clean aviation fuels, aligned with the National Energy Transition Roadmap, and supported Asean’s collective climate goals.
Last November, BZI made headlines after it withdrew from the RM40 billion 99-island Langkasuka land reclamation project in Langkawi, Kedah.
At the time, Shamir said the group had withdrawn from the project to focus on more promising, realistic and high-potential opportunities.
BZI entered into an agreement with private company Widad Business Group Sdn Bhd in March 2021 to form a special-purpose vehicle called Widad BZI Sdn Bhd for the Langkasuka project.
