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China's state-owned Shanxi Construction Investment Group is planning to invest in a hydrogenated vegetable oil (HVO) plant in Malaysia's southern state of Johor, according to a Reuters report on 13 December.

A memorandum of understanding (MoU) about the project was signed between the Malaysian Palm Oil Board, Pengerang Maritime Industries, Shanxi Construction, the Institute of Coal Chemistry and the Chinese Academy of Sciences, according to the report.

Shanxi's overseas department general manager Wang Chongjun said the company was exploring the development of a green diesel refinery and related storage facilities in Johor's Pengerang Maritime Industrial Park using China's technology and Malaysia's palm oil products.

“The current order of the production planning is bio-jet fuel or sustainable aviation fuel (SAF), green diesel, and the corresponding green chemical products that accompany the production,” Wang was quoted as saying.

The biodiesel and SAF would be used to meet the needs of the Chinese market but would also be exported to Europe and the USA, he said.