While the global aviation industry is still scratching its head for carbon reduction, Sabah, Malaysia has directly launched a Rocket level project. On April 6, 2026, Singapore listed company Oiltek and Brunei BioSeaga Industries reached an agreement and signed a term sheet to invest $350 million in building a sustainable aviation fuel plant in Sabah. This is not only a big business, but also a crucial leap for Sabah to transform from a "palm oil producing area" to a "green energy hub".

Eating wastewater and waste oil, spitting out golden fuel

This factory has a special appetite - it doesn't compete with people for food, but specializes in eating palm oil factory wastewater and waste cooking oil. The designed production capacity is 300 metric tons per day, which may not sound as large as an oil refinery, but it is definitely considered a "giant" in the SAF circle. According to the plan, construction is scheduled to begin in the fourth quarter of 2026, and this factory is a "Transformers" with a modular design. We will focus on biofuels first, and can expand to green hydrogen and other low-carbon products at any time in the future.

Oiltek CEO Henry Yong spoke eloquently, stating that this is not just a project, but also aimed at building Sabah into one of the largest SAF production centers in Southeast Asia. After all, the palm trees and abundant biomass resources scattered throughout the mountains in Sabah are the best raw material warehouses. Previously, they may have been treated as waste, but now they are all treasures.

Be both Party A and Party B

The most interesting thing about this is Oiltek's identity. It is not just an investor, but has also been awarded an exclusive engineering, procurement, construction, and commissioning contract by its subsidiary, Uta Malaysia. Simply put, Oiltek handles everything from pre-processing to storage tanks, logistics, and even some mixing facilities on its own. This is not a simple investment, it is clearly bringing capital into the group and taking advantage of the entire industry chain.

As an experienced player on the main board of the Singapore Exchange for over forty years, Oiltek has made a big move in this area. It is preparing for its second listing on the Malaysian main board, and winning the Sabah project this time undoubtedly tells a good story to the capital market. And this guy has other SAF projects in hand in Sarawak, obviously trying to "circle the field" in Malaysia's green energy version. Keywords: Southeast Asian news, energy

Of course, making pancakes is easier than drawing them. Although both parties plan to sign the final agreement before October next year, it is currently only a "letter of intent", and whether it can be achieved depends on whether the money is in place, whether the government approves it, and whether the land is obtained. However, taking advantage of the Malaysian government's push for SAF blending regulations, it is highly likely that the fire of "gutter oil turning into aviation kerosene" will be ignited.Editor/Cheng Liting