Straits Energy Resources Berhad said its subsidiary, Tumpuan Megah Development Sdn Bhd has been awarded certification from the International Sustainability and Carbon Certification scheme, which gives the group access into the marine biofuel trading and bunkering business in the first quarter of 2024.
The development comes as the maritime industry accelerates its transition to low-carbon alternative fuels, such as sustainable biofuels, as part of the global decarbonisation agenda. According to DNV, a maritime industry advisor, global production of sustainable biofuels is expected to grow from 11 Mtoe (million tonnes of oil equivalent) per year to 23 Mtoe by 2026. However, if shipping was to decarbonize fully by 2050 primarily using biofuels, DNV estimates that 250 Mtoe of biofuels would be required annually, representing a more-than-tenfold expansion of this market.
Tumpuan Megah is the first Malaysian industry player to achieve ISCC EU certification as a supplier and trader of biofuels, spearheading the industry’s efforts to lower shipping’s carbon footprint.
With ISCC EU certification, maritime industry players can demonstrate compliance with the sustainability and GHG emission-saving criteria of the European Union. This includes the EU Renewable Energy Directive (RED II), which has set strict guidelines for which biofuels can be considered sustainable. ISCC certification is recognised in key energy markets, including the European Union, the United Kingdom, Japan and Singapore.
