INSIGHT CONVERSATION: Vinesh Sinha, FatHopes Energy

This is the fourth of a seven-part Insight Conversation interview series where leaders and stakeholders in the biofuels space share their thoughts on the opportunities and challenges in Asia's biofuels sector.

Vinesh Sinha, founder and CEO of FatHopes Energy, has spent the past 15 years building one of Southeast Asia's most extensive waste-based biofuel supply chains, moving used cooking oil and other waste lipids from fragmented regional sources into global markets with operations spanning Malaysia, Indonesia, and beyond. Starting in 2010 with a single mission -- to decarbonize transport through waste-derived fuels -- he has driven FatHopes into both the road and aviation sectors, forging partnerships with Malaysia Aviation Group on sustainable aviation fuel and with Denmark's Topsoe on Malaysia's first fully integrated SAF refinery project.

In this Insight Conversation, Sinha speaks with S&P Global Commodity Insights Editor Samyak Pandey about Malaysia's readiness to become a SAF production hub, the evolving feedstock landscape, regulatory design challenges, geopolitical disruptions, and why policy should set carbon targets rather than dictate technology choices.

Do you think Malaysia has enough feedstock to meet the 2030 target or the Carbon Offsetting and Reduction Scheme for International Aviation targets?

I'm confident Malaysia can meet the 2030 target if a mandate comes into play. Such a mandate could be feedstock-agnostic, driven by carbon reduction goals and by investment rather than specific preferences.

The approach here will be highly commercial -- if companies are ready to move, the policy environment will facilitate them. And because Malaysia is a major foreign direct investment destination, there are strong fundamentals to create the conditions for SAF projects to succeed.

Does the recent scrutiny and fallout around the International Sustainability and Carbon Certification in Europe concern you as a used cooking oil collector?

For FatHopes, Europe and the US remain essential because they have the strongest demand for waste and residue. My earlier point was about the country and the broader region's approach, not our own strategy. We have the infrastructure -- collection, traceability, pretreatment, and refining -- to serve any market, and we see ourselves as an enabler. Countries can set their own criteria, and we'll work within them.

On traceability, we have consistently been recertified for more than a decade under all of the globally accepted schemes. Our technology stack/apps has created a strong process for us to have a high level of visibility of the supply chain. We might not be the biggest feedstock collector in the world, and we don't need to be, but we are one of the most consistent. That's because we took traceability seriously early on, investing in systems from 2014 to 2015 and launching our own app in 2016.

Are you expanding into other feedstocks?

Yes. Today we handle several different waste and residue materials. In terms of volume, the next big thing after UCO is palm oil effluent, which is both dirty and challenging to work with. Beyond that, we also work with several others.

The bigger issue, though, is the regulatory framework. Being too prescriptive about what feedstocks can be used stifles innovation. When regulators say "use UCO," everyone simply reclassifies their materials as UCO instead of seeking new ones. Before directives in 2015, it can be argued that there was far more diversity

What is your UCO or POME collection targets for this year and through 2030?

We're expanding into various countries and partnering with local players to enable them to achieve certification. That model supports year-on-year growth.

Is that across all feedstocks?

Yes, our infrastructure isn't built to favor one feedstock over another. We believe everything usable should be used. Most people see waste and residue as feedstock for biofuels; we see biofuels as the best disposal mechanism for waste oils. There's no better way to deal with it, so our responsibility is to collect and divert as much volume of waste and residue as possible toward biofuels.

Since most of your business and margins are export-driven, there are two major challenges this year -- geopolitical volatility and trade protectionism. Which is the bigger disruptor for you?

Geopolitics is a disruptor. Polarization and uncertainty push nations to prioritize energy security. When everything is stable, there's little urgency for it, but in volatile times, biofuels and their feedstock become a hedge. From a protectionist point of view, it will persist -- probably faster in major markets.