FatHopes completes FGE NexantECA feasibility study for integrated SAF refinery

Malaysia-based FatHopes Energy has completed an independent feasibility study for its planned integrated sustainable aviation fuel refinery, conducted by consultancy FGE NexantECA.

The study assessed the technical, economic, and regulatory viability of the project, positioning it among the most competitive SAF production sites globally, according to FatHopes' statement on Feb. 5. With the study completed, the company said the project is ready to advance to the next development phase.

"Securing the SAF pathway landscape and ensuring that the refinery can operate in full compliance with regulations and standards — particularly around end-to-end feedstock traceability is critically important," FatHopes Energy CEO Vinesh Sinha said. He added that the feasibility work assesses whether the broader SAF ecosystem can be met before construction.

FGE NexantECA has been working with FatHopes since 2025, conducting a comparative assessment of major SAF projects worldwide. The scope included evaluations of technology readiness levels, pathway-specific cost structures, lifecycle greenhouse gas emissions-reduction potential, and the policy and regulatory frameworks shaping project deployment.

According to the companies, the analysis also examined evolving global SAF demand dynamics, enabling FatHopes and its strategic partner Bin Zayed Group International to strengthen risk-mitigation strategies and align investment planning with anticipated market growth.

SAF projects globally continue to face challenges around feedstock availability, cost competitiveness and regulatory alignment, with SAF production costs typically two to five times higher than conventional jet fuel. Developers have increasingly focused on integrated models that combine feedstock aggregation, traceability systems and refinery operations to improve economics and meet sustainability requirements under frameworks such as CORSIA.

Shared infrastucture

FatHopes said its refinery is intended to function as shared infrastructure rather than a captive asset, supporting wider SAF adoption across Southeast Asia. "Delaying action compromises the viability of future decarbonization needs," Sinha said, adding that the project is designed to contribute to long-term emissions mitigation as aviation fuel demand grows.

The company has positioned its SAF strategy around a circular-economy model, anchored in used cooking oil and other waste-based feedstocks, and supported by proprietary digital systems that ensure full traceability from collection through processing. Such systems are increasingly critical as regulators and airlines tighten scrutiny of SAF sustainability claims.

Southeast Asia has emerged as a key region for SAF development due to abundant waste-based feedstocks, growing aviation demand and increasing policy focus on low-carbon fuels. Malaysia, Indonesia and Singapore have all outlined SAF ambitions, though large-scale commercial capacity remains limited.

FGE NexantECA said the feasibility study provides a data-driven foundation for investment and execution decisions as SAF markets evolve. Formed through the 2025 merger of FGE and NexantECA, the firm offers advisory services across oil, gas, chemicals and emerging low-carbon technologies.

MOU with Malaysia Aviation

FatHopes Energy has also signed a memorandum of understanding with the airline company Malaysia Aviation Group to explore the potential of UCO as feedstock for sustainable aviation fuel production in Malaysia.

MAG already has a SAF offtake agreement with downstream retailer Petronas Dagangan, under which the latter will supply 230,000 mt of SAF to MAG's airlines. The first deliveries are expected in 2027.

Malaysia Airlines, a part of MAG, completed its first flight using SAF in 2021 and plans to make SAF a more significant part of its fuel mix for regular flights by 2025, according to SAF supplier Neste.

FatHopes also announced a partnership with Denmark-based Topsoe to explore the development of a SAF refinery in Malaysia.

European SAF prices fell again over the week, on the back of strong supply and subdued procurement activity, although sources reported firmer bids toward the end of the week.

Platts, part of S&P Global Energy, assessed the SAF CIF NWE premium to jet cargoes down $65/mt, or 4.4%, in the week to Feb. 4, closing at $1425/mt.

The SAF CIF NWE outright price similarly fell 2.9%, as the SAF FOB FARAG barge outright closed the week $9.50/mt lower at $2000/mt.