Suria Capital Holdings Berhad and Vandelay Ventures Sdn Bhd signed a Memorandum of Understanding on the development of the Sabah Maju Jaya Renewable Energy Industrial Complex at Sapangar Bay, which is estimated to bring in investment of approximately RM700 million.
The project is aimed to develop the state into a processing hub in Hydrogenated Vegetable Oil plant with a capacity of 250,000 MT per annum to produce Sustainable Aviation Fuel from used cooking oil, waste animal fat and other industrial and agricultural residual products. The zone will also house the first Palm Oil Refinery Complex with a capacity of 100,000 MT per annum to cater to the West Coast and Interior Division (“WCID”) of Sabah, which shall benefit the palm oil industry based on its long-term cost-benefit analysis. A packing plant that will produce subsidised cooking oil and packed palm oil products and derivatives will also be built as an extension to service.
According to the company’s the projects are targeted to complete by 2025. SAF is known to be a practical alternative to fossil-based jet fuel. It significantly reduces the CO2 emissions from air transportation and can be used as a drop-in fuel as of today, without any need to modify existing supply chain infrastructure, aircraft, or engines.
Both parties added that the facilities will leverage technology and innovation to ensure the creation of highly skilled locals who will then be able to further boost the productivity and growth of Sabah. The Complex is also expected to bring in further direct investments into Sabah, apart from creating 10,000 job opportunities through the various ancillary industries which will be developed. Suria Capital through its wholly-owned subsidiary, Sabah Ports Sdn Bhd, the State’s main port operator will provide the necessary port facilities to support the downstream activities and the import and export of raw and finished products.
This new venture is expected to boost the volume of liquid bulk oil handled at Sabah ports. Suria Capital believes the establishment of the HVO plant and the Complex in Sabah shall bring social and economic benefits to the State of Sabah.
