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Malaysia's Fathopes defers FID on biofuels plant

Malaysia's Fathopes defers FID on biofuels plant

Singapore, 12 February (Argus) — Malaysian biofuel feedstock supplier Fathopes Energy has postponed the final investment decision (FID) and commissioning target date for its upcoming 300,000 t/yr hydrotreated biofuels plant in Port Klang, Malaysia. Fathopes now targets an FID by the first quarter of 2027, instead of mid-2026 as announced in April 2025. It also aims to commission the plant in mid-2030, instead of 2029 — the original target for commissioning of the plant. The plant will produce sustainable aviation fuel (SAF) or hydrotreated vegetable oil (HVO) via the hydroprocessed esters and fatty acids (Hefa) pathway, depending on commercial considerations. It decided to commission operations later to ensure greater technical accuracy and bankability for the plant, Fathopes Energy told Argus . Fathopes integrated Abu Dhabi conglomerate Bin Zayed International (BZI) as a financial investor in the project in October 2025, after the companies signed an initial agreement to build the plant in April 2025. Fathopes has also allocated more time to find reliable technology partners for the plant's technical feasibility study, with a formal announcement expected in late February, they said. Front-end engineering design (FEED) for the plant is slated to begin in early third quarter 2026 and will be completed by the end of the year. Fathopes also pushed back the plant's commissioning date to incorporate standard oil and gas industry quality for the plant's FEED, as well as its engineering, procurement and construction (EPC) phases. Meanwhile, the plant's 300,000 t/yr capacity captures economies of scale and avoids higher capital outlays typically associated with larger projects, it said, adding that the plant's estimated capital expenditure (Capex) was within industry range. These findings come after the company completed an independent financial feasibility study for the plant, it said last week. Malaysia's access to competitively priced domestic natural gas for hydrogen production provides a cost advantage over plants reliant on imported LNG, Fathopes said. Proximity to regional feedstock supply, direct access to the jetty via pipeline and access to the Port Klang Free Zone, which affords duty exemptions on re-exported goods and streamlined customs procedures, are some of the plant's competitive advantages. The plant is also located near port operations manager and services provider Westports in Port Klang. Fathopes will tap on its original position as a biofuel feedstock aggregator and supplier to source feedstocks for the plant — with feedstock such as used cooking oil, palm oil mill effluent oil, empty fruit bunch oil, spent bleaching earth oil, among others — from locations including Malaysia, Indonesia, the Philippines, Singapore and Brunei, it said. It also has an advantage with its in-house applications — one for commercial partners like restaurants and industrial kitchens, and another for households and small vendors — which track each litre of feedstock to ensure compliance with International Sustainability and Carbon Certification (ISCC) requirements, it added. By Sarah Giam Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.