Sarawak explores 15KTA sustainable aviation fuel pilot plant with Swiss innovator Sulzer, Apeiron Bioenergy

July 2,2025

By: DayakDaily Team

KUCHING, July 2: SEDC Energy (SEDCE) is exploring the development of a Sustainable Aviation Fuel (SAF) pilot plant with an initial capacity of 15,000 tonnes per annum (15 KTA), utilising Sulzer’s cutting‑edge Bioflux technology with a scalable potential to meet the growing regional demand for SAF.

According to a joint media release today, the pilot plant programme marked a major collaboration between Sarawak and Swiss technology leader Sulzer, in positioning the State at the forefront of clean aviation fuel development.

SEDC Energy signed a memorandum of understanding (MoU) with Sulzer and Apeiron Bioenergy, with Oiltek expressing support, witnessed by Deputy Minister of Energy and Environmental Sustainability (MEESty) Datuk Dr Hazland Abang Hipni and Sarawak Economic Development Corporation (SEDC) chairman Tan Sri Abdul Aziz Husain. The ceremony was held in conjunction with MyAero Sustainable Aviation APAC Symposium in Putrajaya.

Sulzer emphasised that the partnership will prioritise two critical enablers for the project’s success—ensuring a steady supply of suitable feedstock and securing SAF offtake agreements before the launch of the plant.

“This initiative reflects Sarawak’s intent to contribute meaningfully to global aviation decarbonisation efforts, while building domestic capability in clean fuel manufacturing,” Sulzer stated.

In further support of this initiative, SEDCE has also partnered with Apeiron Bioenergy, Asia’s largest collector of used cooking oil (UCO), to explore and potentially develop a sustainable UCO collection ecosystem in the region.

This aligns with Sarawak’s circular economy and renewable energy goals, transforming waste into low‑carbon SAF.

“Apeiron Bioenergy will work with SEDCE to establish UCO logistics, storage, and traceability systems, leveraging its 17 years of experience in biofuel markets to ensure sustainability and compliance throughout the collection network,” said the Singapore‑headquartered company, which operates in 10 countries and has supplied over 1 million metric tons of UCO for biofuel production since 2016.

Oiltek Sdn Bhd, a wholly owned subsidiary of Singapore Exchange‑listed Oiltek International Limited, is also supporting the SAF programme.

With an extensive portfolio in biodiesel and renewable energy projects—including Sarawak’s 600 MTD integrated biodiesel facility in Bintulu—Oiltek brings proven expertise to the SAF pilot plant’s development.

“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.

Oiltek, established in 1980, has delivered over 16 biodiesel plants and more than 20 methane biogas capture facilities across 38 countries. It also built a crude POME oil treatment plant in Sarawak that supplies high‑quality feedstock to HVO producers in Singapore and Europe.

SEDC Energy chief executive officer (CEO) Robert Hardin highlighted that SAF production requires hydrogen via the hydrogenation process to remove oxygen from feedstocks and convert them into jet fuel.

“Hydrogen is needed in removing oxygen from the feedstock, which will then convert this into jet fuel or in this case, SAF,” he said, noting that the pilot plant complements Sarawak’s broader hydrogen value chain ambitions.

This SAF pilot plant initiative comes amid the global aviation industry’s transition toward low‑carbon fuels, driven by the International Civil Aviation Organisation (ICAO)’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).

The scheme, which becomes mandatory in 2027, targets 85 per cent coverage of international aviation CO₂ emissions through the participation of major economies such as China, India, and Brazil.

As Sarawak advances its aspiration to become a regional energy hub, the SAF pilot plant project is seen as a strategic step to anchor its presence in the global clean energy value chain and support the aviation sector’s climate goals. — DayakDaily