Sarawakian firm BCS Aviation signs MoUs to supply SAF derived from used cooking oil for Malaysian aviation market

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By DayakDaily Team

KUCHING, Oct 1: BCS Aviation (Sarawak) Sdn Bhd (BCS), a leading Sarawakian firm specialising in aviation services, has signed two memoranda of understanding (MOUs) to enhance the production and distribution of sustainable aviation fuel (SAF) from used cooking oil, making it the first company to introduce SAF into the Malaysian aviation market.

According to a press release, the first MoU was signed with Thailand’s Bangchak Corporation Public Company Limited (Bangchak) which aims to explore the opportunities for the distribution and logistics of SAF from Thailand to Malaysia.

It was signed between BCS Aviation founder and chief executive officer (CEO) Dato Sri Robert Song and director Dato Akim Matrang, while Bangchak was represented by senior executive vice president of Refinery Business Group, Thamarat Paryoonsuk and vice president of Refinery Strategic and Business Development Anekpracha Kaewmanee.

Through the strategic collaboration, both companies will work together to assess the feasibility of SAF supply and blending in Malaysia.

BCS Aviation, in partnership with Meana Oil Sdn Bhd, will become the first company to introduce SAF directly to aircraft in Malaysia.

The construction of the SAF production unit at Bangchak refinery from used cooking oil is a joint effort to support the aviation industry in reducing carbon dioxide emissions into the atmosphere according to the plans of the International Civil Aviation Organisation (ICAO).

SAF has garnered global attention as a key fuel in achieving targets for carbon dioxide emission reduction.

Notably, the United States passed the Inflation Reduction Act of 2022 (IRA) last year, which provides incentives to producers through a tax credit of USD1.75 per gallon of SAF.

Similarly, Europe has adopted a mandate requiring a minimum portion of SAF in the overall fuel supply, with targets set at 2 per cent by 2025, 5 per cent by 2030, and 70 per cent by 2050.

Japan has also established a goal for international flights passing through Japanese airports, stipulating a SAF blending ratio of 10 per cent by 2030.

The SAF production unit at Bangchak refinery will incorporate Malaysian-based Desmet’s Pre-Treatment technology to effectively eliminate impurities and contaminants from used cooking oil collected from the “Fry to Fly” campaign and other channels.

Additionally, the production process will involve a deoxygenation process, employing UOP Ecofining Technology from Honeywell UOP, United States of America (USA), to alter and crack the molecular structure using hydrogen, which is an effective solution to produce SAF from Honeywell UOP.

The unit is projected to have a daily production capacity of approximately 1 million litres and is scheduled for commissioning in the fourth quarter of this year.

This initiative reflects BCS’s commitment to green energy solutions and reinforces its leadership in the feedstock industry and sustainable aviation sector.

“This partnership with Bangchak represents a significant leap forward in our efforts to bring sustainable fuel solutions to the Malaysian aviation industry. Together, we are not only introducing SAF to the market but also supporting the broader green energy transition in Southeast Asia,” Song reportedly said.

As part of this collaboration, the two companies aspire to explore the potential for exclusive SAF supply across other Southeast Asian countries, further advancing sustainable practices in the aviation industry.

The second MoU was signed with Aerospace Malaysia Innovation Centre (AMIC) and Singapore’s Apeiron Agrocommodities Pte Ltd to embark on a feasibility and logistical study on SAF for Business Aviation and General Aviation (BAGA) in Selangor and Sarawak.

Under the three-year MoU, the three parties will strengthen technical cooperation in establishing a ‘sister’ plant in Sarawak including feedstocks and logistics of feedstocks.

They will also conduct a feasibility study of SAF distribution and logistics in Malaysia, including Borneo region, export ports and supply; as well as to study the business and requirements of SAF for BAGA.

A joint working group will also be established to facilitate the cooperation and smooth implementation of this MoU.

The second MoU was signed between Song representing BCS Aviation, while Apeiron by managing director Chris Chen and AMIC by chief executive officer Dr Liew Kan Ern.

Both MoUs were signed during the Selangor Aviation Show 2024 held at Subang SkyPark on Sept 12.

These initiatives aligned with Malaysia and Sarawak’s efforts to transform the nation’s aerospace industry into a globally competitive sector, especially the local industries for SAF, with commitment to human capital development and wider application of research and technology, in its pledge to reduce carbon emissions intensity to achieve Net Zero emissions as early as 2050. — DayakDaily

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