KUALA LUMPUR (Feb 14): Suria Capital Holdings Bhd has signed a memorandum of understanding with Vandelay Ventures Sdn Bhd to develop the Sabah Maju Jaya Renewable Energy Industrial Complex at Sapangar Bay in Kota Kinabalu.
In a bourse filing, Suria Capital said the development is set to bring in investments of about RM700 million.
The group said the complex involves a hydrogenated vegetable oil (HVO) plant with a capacity of 250,000 tonnes per annum to produce sustainable aviation fuel (SAF) from used cooking oil, waste animal fat and other industrial and agricultural residual products.
“SAF is a practical alternative to fossil-based jet fuel. It significantly reduces the carbon dioxide 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 and engines,” it added.
Suria Capital said the complex also involves a palm oil refinery complex with a capacity of 100,000 tonnes per annum to cater for the West Coast and Interior Division (WCID) of Sabah, which will benefit the palm oil industry based on its long-term cost-benefit analysis.
“A packing plant which will produce subsidised cooking oil and packed palm oil products and derivatives will also be built as an extension to service the WCID,” it added.
The group said the projects are targeted to be completed by 2025.
Apart from bringing in investments, Suria Capital said the complex will create 10,000 job opportunities through the various ancillary industries which will be developed.
It added that its wholly-owned subsidiary Sabah Ports Sdn Bhd will provide the necessary port facilities to support the downstream activities and the import and export of raw materials 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,” the group said.
Edit By : S Kanagaraju
Suria Capital inks MoU to develop renewable energy industrial complex | The Edge Markets