Southeast Asia is gearing up to supply surplus biofuels to European markets as production in the region continues to expand, a senior executive from Malaysia’s state-owned energy company Petronas has said.
With growing investments in renewable energy and biofuel production capacity across Malaysia, Indonesia, and other regional players, the sector is expected to generate volumes beyond domestic demand. This surplus, according to the executive, will be directed toward Europe, where demand for sustainable fuels is rising due to stricter climate policies and decarbonization targets.
European Union regulations, including mandates for reducing emissions from transport, have created a strong market pull for biodiesel and other renewable fuel alternatives. Southeast Asian producers, already major suppliers of feedstocks like palm oil, are now expanding their refining and processing capabilities to cater to this demand.
Industry experts note that while the exports could strengthen trade ties between the two regions, they also highlight ongoing debates around sustainability standards and certification of biofuels. Petronas and other players are reportedly working to align production with international environmental requirements to ensure market access.
Southeast Asia Preparing To Export Surplus Biofuels To Europe, Says Petronas Executive
