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Daily Express
4 days ago
- Business
- Daily Express
Gamalux Oils CEO calls for mandatory sustainable aviation fuel purchases by local airlines
Published on: Friday, June 06, 2025 Published on: Fri, Jun 06, 2025 By: Bernama Text Size: Usman said Malaysia has the industrial capacity and feedstock availability to support SAF production at scale, but policy intervention is needed to create demand certainty. Kuala Lumpur: Mandatory purchases of sustainable aviation fuel (SAF) by local airlines at Malaysian airports are necessary to drive adoption and unlock the country's potential in the SAF sector, said Gamalux Oils Sdn Bhd chief executive officer Usman Ahmed. Usman said Malaysia has the industrial capacity and feedstock availability to support SAF production at scale, but policy intervention is needed to create demand certainty. Advertisement 'We have all the feedstocks such as used cooking oil, palm oil mill effluent, empty fruit bunch oil and spent bleaching earth oil. 'In my humble opinion, what Malaysia needs is a regulatory policy framework that enables SAF blending and mandates purchase by national airlines at all airports in the country,' he told Bernama after appearing on Bernama TV's The Nation programme titled 'The Future of Sustainable Aviation Fuel'. SAF is a low-carbon alternative to conventional jet fuel, produced from sustainable feedstocks, including used cooking oil and agricultural waste. Responding to concerns about the scalability of used cooking oil as a SAF feedstock, Usman affirmed its viability in substantial volumes. 'According to export data from the Malaysian Palm Oil Board, Malaysia exports approximately 600,000 tonnes of used cooking oil annually, a substantial volume that makes it a viable feedstock for any SAF production facility,' he said. While Malaysia does not currently have SAF production plants, Usman pointed out that pre-treatment and refining facilities are already in place. 'We export our products to companies such as BP, Eni of Italy, Neste of Finland, as well as other European and Asian firms, which convert them into tailor-made SAF. Regarding the SAF industry's value, Usman estimated that Malaysia exports around 1.5 million tonnes of SAF-grade or hydrotreated vegetable oil (HVO) feedstock annually. 'Based on current prices of around US$1,100 (US$1 = RM4.22) per tonne, we're looking at US$15 to US$18 billion worth of commodity products exported annually,' he said. Usman noted that while SAF is more expensive than conventional jet fuel, the cost impact on passengers would be modest if SAF blending is mandated. 'At the end of the day, the cost is borne by the passenger, possibly with some government subsidy, but we must recognise that this is for the greater good, as it supports the decarbonisation of aviation and the reduction of greenhouse gas emissions,' he explained. Usman added that global geopolitical tensions and commodity price volatility continue to affect the SAF price gap, making regulatory certainty even more vital. He said Malaysia is on the right track with the government's National Energy Transition Roadmap and its 2050 net-zero emissions target already in place, adding that a regulatory policy framework to support SAF blending would further strengthen the country's progress. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Sun
4 days ago
- Business
- The Sun
Gamalux Oils CEO calls for mandatory SAF purchases by local airlines
KUALA LUMPUR: Mandatory purchases of sustainable aviation fuel (SAF) by local airlines at Malaysian airports are necessary to drive adoption and unlock the country's potential in the SAF sector, said Gamalux Oils Sdn Bhd chief executive officer Usman Ahmed. Usman said Malaysia has the industrial capacity and feedstock availability to support SAF production at scale, but policy intervention is needed to create demand certainty. 'We have all the feedstocks such as used cooking oil, palm oil mill effluent, empty fruit bunch oil and spent bleaching earth oil. 'In my humble opinion, what Malaysia needs is a regulatory policy framework that enables SAF blending and mandates purchase by national airlines at all airports in the country,' he told Bernama after appearing on Bernama TV's The Nation programme titled 'The Future of Sustainable Aviation Fuel'. SAF is a low-carbon alternative to conventional jet fuel, produced from sustainable feedstocks, including used cooking oil and agricultural waste. Responding to concerns about the scalability of used cooking oil as a SAF feedstock, Usman affirmed its viability in substantial volumes. 'According to export data from the Malaysian Palm Oil Board, Malaysia exports approximately 600,000 tonnes of used cooking oil annually, a substantial volume that makes it a viable feedstock for any SAF production facility,' he said. While Malaysia does not currently have SAF production plants, Usman pointed out that pre-treatment and refining facilities are already in place. 'We export our products to companies such as BP, Eni of Italy, Neste of Finland, as well as other European and Asian firms, which convert them into tailor-made SAF. Regarding the SAF industry's value, Usman estimated that Malaysia exports around 1.5 million tonnes of SAF-grade or hydrotreated vegetable oil (HVO) feedstock annually. 'Based on current prices of around US$1,100 (US$1 = RM4.22) per tonne, we're looking at US$15 to US$18 billion worth of commodity products exported annually,' he said. Usman noted that while SAF is more expensive than conventional jet fuel, the cost impact on passengers would be modest if SAF blending is mandated. 'At the end of the day, the cost is borne by the passenger, possibly with some government subsidy, but we must recognise that this is for the greater good, as it supports the decarbonisation of aviation and the reduction of greenhouse gas emissions,' he explained. Usman added that global geopolitical tensions and commodity price volatility continue to affect the SAF price gap, making regulatory certainty even more vital. He said Malaysia is on the right track with the government's National Energy Transition Roadmap and its 2050 net-zero emissions target already in place, adding that a regulatory policy framework to support SAF blending would further strengthen the country's progress.
The Sun
4 days ago
- Business
- The Sun
Gamalux: Mandate SAF use to boost Malaysia's green aviation
KUALA LUMPUR: Mandatory purchases of sustainable aviation fuel (SAF) by local airlines at Malaysian airports are necessary to drive adoption and unlock the country's potential in the SAF sector, said Gamalux Oils Sdn Bhd chief executive officer Usman Ahmed. Usman said Malaysia has the industrial capacity and feedstock availability to support SAF production at scale, but policy intervention is needed to create demand certainty. 'We have all the feedstocks such as used cooking oil, palm oil mill effluent, empty fruit bunch oil and spent bleaching earth oil. 'In my humble opinion, what Malaysia needs is a regulatory policy framework that enables SAF blending and mandates purchase by national airlines at all airports in the country,' he told Bernama after appearing on Bernama TV's The Nation programme titled 'The Future of Sustainable Aviation Fuel'. SAF is a low-carbon alternative to conventional jet fuel, produced from sustainable feedstocks, including used cooking oil and agricultural waste. Responding to concerns about the scalability of used cooking oil as a SAF feedstock, Usman affirmed its viability in substantial volumes. 'According to export data from the Malaysian Palm Oil Board, Malaysia exports approximately 600,000 tonnes of used cooking oil annually, a substantial volume that makes it a viable feedstock for any SAF production facility,' he said. While Malaysia does not currently have SAF production plants, Usman pointed out that pre-treatment and refining facilities are already in place. 'We export our products to companies such as BP, Eni of Italy, Neste of Finland, as well as other European and Asian firms, which convert them into tailor-made SAF. Regarding the SAF industry's value, Usman estimated that Malaysia exports around 1.5 million tonnes of SAF-grade or hydrotreated vegetable oil (HVO) feedstock annually. 'Based on current prices of around US$1,100 (US$1 = RM4.22) per tonne, we're looking at US$15 to US$18 billion worth of commodity products exported annually,' he said. Usman noted that while SAF is more expensive than conventional jet fuel, the cost impact on passengers would be modest if SAF blending is mandated. 'At the end of the day, the cost is borne by the passenger, possibly with some government subsidy, but we must recognise that this is for the greater good, as it supports the decarbonisation of aviation and the reduction of greenhouse gas emissions,' he explained. Usman added that global geopolitical tensions and commodity price volatility continue to affect the SAF price gap, making regulatory certainty even more vital. He said Malaysia is on the right track with the government's National Energy Transition Roadmap and its 2050 net-zero emissions target already in place, adding that a regulatory policy framework to support SAF blending would further strengthen the country's progress.
Daily Express
02-05-2025
- Business
- Daily Express
Sabah confident of completing 1,265 projects this year
Published on: Thursday, May 01, 2025 Published on: Thu, May 01, 2025 By: Larry Ralon Text Size: Masidi (second right) launching Gamalux's new corporate logo while Usman (middle), Yong (right), Fredian (left) and Thomas (second left) look on. Kota Kinabalu: The State Government is confident of achieving the target of completing 1,265 projects and programmes this year due to improvements in administrative efficiency, said State Finance Minister Datuk Seri Masidi Manjun. 'While we allocate funds, the actual implementation is carried out by district offices, ministries and departments,' he said, after launching Gamalux Oils Sdn Bhd's new corporate logo at Le Meridien, Tuesday. His Ministry now evaluates each implementing agency's past performance before approving new allocations, to ensure more effective spending. 'For example, if an agency only managed to use 90 per cent of previous year's allocation, it will only be granted 90pc this year. If you can't use the funds effectively, you shouldn't ask for more,' he said, adding this approach has motivated government agencies to strive for timely project delivery. 'This might be an election year, but for me, project implementation isn't just about politics. It also demonstrates the capability and efficiency of our public administration,' he said. Masidi clarified that the projects span multiple ministries and government agencies, covering both large-scale and small initiatives, particularly essential infrastructure in rural areas. 'Our focus is on projects that have significant impact on people's lives, especially the underprivileged. This includes roads, water supply and other basic infrastructure,' he said. He said the State Development Action Council MTNg), which was chaired by Chief Minister Datuk Seri Hajiji Noor earlier, reviewed project implementation performance with support from Federal-level development officers. 'Overall, the management and implementation of projects this year appear to be better than last year, although some projects still require closer monitoring.' Meanwhile, Masidi said Gamalux' investment of RM230 million in Sabah as well as the company's plans to expand its investment further reflects its confidence in Sabah's business environment and development potential. 'I congratulate the Gamalux management for leading efforts to preserve the environment. One of their core principles is to ensure their production processes align with environmental sustainability goals,' he said. Gamalux practises a green business approach, including recycling discarded materials for reuse. 'They prioritise profit, but not at the expense of the environment. This is a value we greatly welcome in Sabah,' he said. He said the company's decision to invest in Sabah also reflects the State's suitability as a destination for green-focused investments, supported by community acceptance and an increasingly efficient administrative system. Earlier, Gamalux Group CEO and Managing Director Usman Ahmed announced a fresh RM480 million investment to expand its manufacturing complex in Lahad Datu, strengthening its commitment to environmental innovation and local economic growth. He described Environmental, Social and Governance (ESG) principles as the 'oxygen' of Gamalux's operations. 'ESG is more than a buzzword. It is embedded in our DNA. We have delivered real, sustainable impact through our business practices,' he said. Since starting operations in Sabah in 2009, Gamalux has specialised in converting palm oil waste such as Spent Bleaching Earth (SBE) and Palm Oil Mill Effluent (POME) into high-value biofuel components for the Biodiesel, Hydrogenated Vegetable Oil (HVO) and Sustainable Aviation Fuel (SAF) industries. 'Our innovations have helped raise global standards in circular production and have been recognised through international certifications, including the ISCC and the Italian National Scheme,' he said. From its base at POIC Lahad Datu, which he referred to as 'the industrial capital of Sabah', Gamalux has invested RM230 million into its current facilities. The additional RM480 million in new investments will fund several cutting-edge projects and phases of development. Among them is the region's most advanced effluent treatment system, which has been operational since March 2025, underscoring the company's strong environmental commitment. A sustainable biomass steam generation boiler powered by palm waste is currently under construction and is expected to improve energy efficiency and reduce carbon emissions. In addition, Sabah's first R&D Centre focused on palm oil waste valorisation is slated to open by the end of the year. This centre will support business partners with advanced research and development solutions. The company is also expanding its storage capacity to meet rising demand from the renewable energy sector. Furthermore, Gamalux is developing Sabah's first next-generation oleochemical plant, which will create bio-based solutions derived from industry-grade palm oil. Beyond technology and infrastructure, the expansion also brings social value. Usman said 150 new high-skilled jobs will be created for Sabahans, in addition to the 270–300 local employees already working with the company. 'We are proud to help shape a greener, more prosperous future for Sabah's industrial landscape,' he said. Also present were POIC Sabah Chairman Datuk Seri Yong Teck Lee; POIC Sabah CEO Datuk Fredian Gan; and Industrial Development and Entrepreneurship Ministry's Permanent Secretary Datuk Thomas Logijin. * Follow us on Instagram and join our Telegram and/or WhatsApp channel(s) for the latest news you don't want to miss. * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
New Straits Times
29-04-2025
- Business
- New Straits Times
Not just for elections: Sabah government defends 1,265 planned projects
KOTA KINABALU: The 1,265 programmes and projects planned for this year aim to deliver lasting impact beyond the election season, said Sabah Finance Minister Datuk Seri Masidi Manjun. "Even though some say this is a special year—perhaps because it's an election year—for me, there's a greater reason." "These projects need to be implemented not just because we want to prove that they are not election-driven, but also to showcase the efficiency of our public service and administration." "What's important is our focus on projects that bring significant impact to people's lives—especially those in rural areas and among low-income groups—like basic infrastructure development such as roads, water supply, and so on," he told the media after launching the new logo for Gamalux Oils Sdn Bhd at a hotel here. Earlier in the afternoon, Sabah Chief Minister Datuk Seri Hajiji Noor announced that the state is committed to completing the 1,265 projects, after chairing the State Development Action Council meeting at Menara Kinabalu. Masidi added that both state and federal governments will oversee the implementation of those small- and large-scale initiatives. When asked about the government's confidence in achieving this goal, he said the real measure of success lies in administrative efficiency. "We allocate funds, but implementation is mostly carried out by district offices, ministries, departments, and so on. "For example, the Finance Ministry will consider funding requests and allocations from each ministry or department. We also review their past performance. "If they only spend 90 per cent of their allocated budget the previous year, then we will only allocate a similar amount this year," he said, adding that the channeling of federal allocations to the state has improved compared to previous years. Earlier, he said Gamalux, which has invested RM230million in Sabah, is committed to eco-friendly practices in reprocessing discarded materials. "This is proof that they have trust and confidence in Sabah as an investment destination." Nation 10 hours ago Sabah aims to complete 1,265 projects this year, says CM Nation Nov 20, 2024 @ 8:16pm Sabah calls for early involvement in federal project planning to maximise funds Nation Nov 19, 2024 @ 12:19am Sabah govt needs time to resolve revenue claim Nation Nov 19, 2024 @ 2:17am Sabah rural crafters earn 6-figure monthly sales
