Malaysia's state-owned SEDC Energy said July 2 that it is to develop a 15,000 mt/year sustainable aviation fuel plant in Sarawak, in collaboration with global technology provider Sulzer, biofuel leader Apeiron Bioenergy, and renewable energy engineering firm Oiltek.

The initiative was formally announced during the MyAero Sustainable Aviation APAC Symposium, where a memorandum of understanding was signed in the presence of Deputy Minister of Energy and Environmental Sustainability and SEDC Chairman.

The SAF pilot plant will be spearheaded by SEDC Energy, a wholly owned subsidiary of the Sarawak Economic Development Corporation, utilizing Sulzer's proprietary BioFlux modular technology.

The pilot project is envisioned as a scalable model to meet rising SAF demand in the Asia-Pacific region.

"This initiative reflects Sarawak's intent to contribute meaningfully to global aviation decarbonization efforts, while building domestic capability in clean fuel manufacturing," Sulzer said in a statement.

As part of the collaboration, Apeiron Bioenergy -- Asia's largest used cooking oil collector -- will support the feedstock supply and logistics for the plant.

Apeiron, which has supplied over 1 million mt of UCO for biofuel production since 2016, will help develop a traceable, sustainable UCO ecosystem in Sarawak.

The system will include logistics, storage and verification frameworks aligned with international compliance standards.

"This MOU signifies a strategic collaboration between Sarawak and Apeiron Bioenergy to explore and potentially develop a sustainable UCO collection ecosystem in the region," the company said, adding that the move supports Sarawak's goals in renewable energy and circular economy growth.

Supporting the project's engineering and technology is Oiltek , a subsidiary of Singapore-listed Oiltek International Ltd.

Oiltek has designed and built one of the world's largest physical refinery plants, with a capacity of approximately 2,800 mt/day, according to Oiltek.

This plant is located in Bintulu, a coastal town on the island of Borneo in the central region of Sarawak, and is licensed by the Malaysian Palm Oil Board for commercialization of the latter's palm biodiesel and winter fuel processes.

"In collaboration with SAF technology provider Sulzer, we are confident in our ability to make this showcase SAF plant a flagship success in Sarawak," said Oiltek.

Speaking on the hydrogen requirements of SAF production, SEDCE Chief Executive Officer Robert Hardin emphasized that the pilot plant aligns with Sarawak's broader hydrogen economy roadmap.

"Hydrogen is essential for removing oxygen from feedstock during the hydrotreatment process, converting it into jet fuel. This plant complements our strategy to strengthen the hydrogen value chain in Sarawak," Hardin said.

Sarawak's SAF ambitions are further bolstered by Japan's Marubeni Corp, which in May 2024 signed an MOU with InvestSarawak to conduct a feasibility study on developing a SAF supply chain in the state. The study will assess the viability of SAF production from biomass feedstock, capital requirements, site selection, and potential access to domestic and international incentives.

Marubeni aims to enable either local SAF consumption or exports by 2030. The project also considers downstream applications including green ammonia, renewable gases, and bio-based chemicals.

Globally, Marubeni has been actively pursuing SAF ventures, including a partnership with the UAE's ENOC Group and a methanol-to-jet fuel consortium involving Masdar, TotalEnergies, Siemens Energy, and Lufthansa Group.