00:00Sustainable Aviation Fuel, or SAF, is a sustainable aviation fuel that is used in the aviation sector
00:13in accordance with the international standards of sustainability.
00:18The use of SAF is one of the initiatives introduced to achieve the goal of the International Civil
00:25Aviation Organization, or ICAO, to reduce carbon emissions in the aviation sector by 5% by 2030
00:37and will be mandatory starting in 2027.
00:42In addition to the country's commitment to achieve carbon emissions, or carbon emissions,
00:48by 2050, SAF also has great potential for the country's economy, especially in improving the economy of the aircraft industry.
01:01Malaysia, as the second largest oil producer in the world, is in a strategic position to be one of the world's leading SAF producers.
01:12One of the raw materials is feedstock, which can be used to produce SAF, including MT Fruit Bunch,
01:21Palm Oil, Milk Affluence, and cooking oil.
01:27Malaysia is the second largest oil producer in the world.
01:32There are several strategies that we have arranged.
01:36The first is the Malaysian Aviation Decarbonization Blueprint, or MDB,
01:41which was prepared by the Ministry of Transport in September 2004,
01:46followed by the Ministry of Rural Affairs and Communities,
01:49together with the Ministry of Trade and Industry, or MITI.
01:55Both ministries are trying to develop a National Strategy Document for Sustainable Aviation Fuel
02:02to support the development of the country's export and SAF industries.
02:07Secondly, we are also improving the program of awareness-raising of cooking oil,
02:17or Use Cooking Oil, throughout the country,
02:20where the Ministry of Rural Affairs and Communities will work together with organizations such as PETRONAS
02:27to promote the use of cooking oil.
02:33Thirdly, we are also encouraging investors to come to our country to build SAF factories.
02:42To date, one company has issued a license,
02:46Eco-Ceres Renewable Fuels, which will build 350,000 metric tons of SAF per year.
02:55PETRONAS is also conducting several studies,
03:02and PETRONAS is also one of the companies that will build SAF factories
03:09with a capacity of 650,000 metric tons.
03:14The next strategy is, we are also considering several tax incentives
03:20to encourage investors to come to Malaysia,
03:23using Malaysia as a hub to build SAF.
03:32Thank you, Mr. Prime Minister.
03:34We know that one of the main challenges of SAF is the lack of export and supply.
03:41It is an alternative to the existing jet fuel.
03:44It is known that in the blueprint determined by the Malaysian Aviation Industry,
03:52with the use of SAF, we will reduce 46% of the use of jet fuel.
03:56It is a good news for our net zero emission 2050.
04:01My question to you, Mr. Prime Minister, is,
04:03what do you think, to ensure that the SAF initiative
04:08can increase the value of the country's economy?
04:13Second, how can it increase the living standards of our farmers,
04:17small farmers, and also the entrepreneurs in our country?
04:25Thank you, Mr. Prime Minister.
04:27First, we need SAF-producing factories.
04:33When there are factories,
04:35as I mentioned earlier,
04:36first, Eco-Ceres, 350,000 m3,
04:41then Petronas, 650,000 m3.
04:45If there are two factories,
04:46it means that we can export SAF for 1 million m3.
04:52So what happens?
04:54In every flight,
04:56if the oil we use is jet fuel,
04:59it is not 100% bio,
05:02no.
05:03The mandate of some countries is 1% of the total jet fuel.
05:08If we use 24 million barrels of jet fuel,
05:12or 3.8 million m3 of jet fuel,
05:15we want 1%,
05:17if our mandate is 1%,
05:18it is 38,000.
05:20If the mandate is 28%,
05:22it is more or less 76,000,
05:24and so on.
05:25But in every flight,
05:27this aircraft can take up to 46% or 47% of the total jet fuel.
05:37But in our country,
05:39any surplus of this capacity,
05:41we will export to countries that do not have the capacity
05:45to make SAF,
05:48or SAF,
05:50Sustainable Aviation Fuel,
05:52for us to export.
05:53This is a potential economic value that we will get
05:57from exporting ingredients to sell SAF to countries
06:03that do not have the feedstock to develop SAF.
06:09The second question is,
06:11what benefits will be obtained by small farmers and industry players?
06:17Already determined, this palm oil is a commodity plant
06:23that is very valuable,
06:25because its waste also has a greater value than the CPO.
06:32Because the sale of aviation fuel is really high
06:36compared to the oil of the usual petrol brand.
06:42Based on the statement made by the DCL Group,
06:46DHL Express and Shell have signed a one-year cooperation contract
06:52to supply 25,000 metric tons of Sustainable Aviation Fuel
06:57as an effort to reduce around 80,000 metric tons of greenhouse gas emissions.
07:04My additional question is,
07:06is the form of public-private cooperation that is being planned by the Ministry
07:13aimed at creating a variety of alternatives
07:16for the production of sustainable fuel,
07:19especially for the use of air transportation and commercial maritime
07:24in line with the responsibility of the environment
07:26highlighted by the cooperation between the two world-class companies.
07:34Thank you, Mr. President.
07:35As we are well aware,
07:38our country has a commitment to achieve net zero carbon emission
07:45by 2050.
07:48So in the process of reaching net zero carbon emission by 2050,
07:53one of the strategies is how we can produce this fuel
07:59and supply it to all aviation industries around the world
08:04if they want to buy this fuel from us.
08:07So for now, we do not have a factory to process this fuel.
08:12So, of course, many companies like Shell and others
08:16will buy this fuel from countries that will produce this fuel
08:20because our feedstock is based on palm oil.
08:24There is also this fuel that can be built through animal fat,
08:29that is, any country that can use animal fat
08:34or any producing country that has this raw material
08:39can sell it to Malaysia.
08:41But as of today, we do not have a factory.
08:43In the process of building, two investors have come
08:47and the investment is expected to be around 7-8 billion ringgit.
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