UAE’s BZI Invests $500 Million to Build Malaysia’s First SAF Refinery

Bin Zayed International (BZI), the UAE’s largest investment group, will invest $500 million (about RM2.188 billion) to build a Sustainable Aviation Fuel (SAF) refinery at Port Klang, partnering with Malaysia’s FatHopes Energy (FHE).

The project aims to help Malaysia achieve an annual SAF production target of 1 million tonnes, positioning the country as a regional clean energy hub. Construction is expected to begin within 12 months, with operations targeted for early 2026.

The refinery will have an initial capacity of 300,000 tonnes per year, using mainly waste and residual oils, and will adopt Hydroprocessed Esters and Fatty Acids (HEFA) technology. Output will serve both domestic and international markets.

BZI Managing Director Dato’ Sri Shamir Ghuma said the investment reflects the group’s commitment to sustainable development. Malaysia’s Natural Resources Minister Nik Nazmi added the project will boost Malaysia’s energy security, reduce import reliance, and contribute to national net-zero goals.

BZI will also acquire a strategic stake in FHE to ensure long-term collaboration and innovation. Full commercial operations are expected by 2029.