APPEC: SE Asia well placed to export biofuels amid capacity surplus: Petronas VP

Southeast Asia is well-positioned to export biofuels to markets such as Europe, as the region's production capacity exceeds local demand, Ahmad Adly Alias, Vice President of Refining, Marketing and Trading at Petronas, said at the APPEC 2025 event in Singapore.

Ahmad projected that Asia's sustainable aviation fuel capacity could reach as much as 4 million metric tons annually by 2030.

"This surplus positions ASEAN as a viable net exporter to markets like Europe," he said at the event, which is hosted by S&P Global Energy and runs from Sept. 8-11.

He further emphasized that Asia's natural advantage lies in its abundant feedstock resources. Additionally, he noted that biofuel transport demand in the Asia Pacific is expected to surge to approximately 250 million liters per year by 2030, representing the fastest growth globally and highlighting significant opportunities in the region.

Petronas is also developing a 650,000-mt biorefinery in Pengerang, Johor, in collaboration with Italy's Eni and Japan's Euglena, with operations scheduled to begin in the second half of 2028.

In his presentation, Ahmad also highlighted Petronas' recent delivery of SAF to Kuala Lumpur International Airport (KLIA) on Sept. 8. The SAF was blended in Pengerang and then shipped to the airport.

Furthermore, Ahmad mentioned some of Petronas' previous decarbonization efforts, which include sourcing and delivering HVO100 to multiple locations in Europe to support the Mercedes-AMG Petronas F1 team. Also, in collaboration with Vitol in 2023, Petronas supplied B24 marine biofuels and operated LNG bunkering vessels to provide a lower-carbon alternative compared to traditional fuels.

Platts, part of Energy, assessed SAF (HEFA-SPK) FOB Straits at $2,577/mt on Sept. 9, down $44.25/mt day over day.