Oiltek, SEDC Energy in talks on potential role in Sarawak sustainable aviation fuel plant initiative

The programme is in collaboration with sustainable aviation fuel technology provider Sulzer

Oiltek announced on Thursday (Jul 3) that it is in talks with Sarawak Economic Development Corporation (SEDC) Energy, the wholly owned subsidiary of SEDC, to explore possibilities of the company’s involvement in its sustainable aviation fuel pilot plant programme.

As at Thursday morning, no definitive agreements or formal plans have been finalised or approved by the board, the company said.

The programme is in collaboration with sustainable aviation fuel technology provider Sulzer, where SEDC Energy has been entrusted to develop the sustainable aviation fuel pilot plant with an initial size of 15 kilotonnes per annum.

The renewable fuels modular plant will utilise Sulzer’s Bioflux technology as a pilot project with scalable potential to meet the growing sustainable aviation fuel production demand in the region. Sulzer said: “This initiative reflects Sarawak’s intent to contribute to global aviation decarbonisation efforts, while building domestic capability in clean fuel manufacturing.”

Moreover, SEDC Energy has also engaged with Apeiron Bioenergy, a Singapore-headquartered waste feedstock supplier for biofuel, to leverage its operational capability for the venture, to establish used cooking oil logistics, storage and traceability systems. Oiltek has designed and constructed the 600-tonnes-per-day integrated biodiesel facility in Bintulu, which supplies biodiesel for Sarawak’s mandatory blending programme.

Since 2019, the company has also designed and built a palm oil mill effluent (POME) oil treatment plant, which refines crude POME oil into high-quality feedstock supplied to leading global hydrotreated vegetable oil producers in Singapore and Europe.

Shares in Oiltek were trading 1.8 per cent or S$0.01 higher at S$0.57 as at 10.14 am.

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