“This MoU will outline the collaboration between the two parties to conduct a joint pre-feasibility study for a commercial-scale SAF value chain in Sarawak,” said InvestSarawak and Marubeni in a joint statement.

They said the goal is to confirm the feasibility of producing SAF using biomass feedstock and assess the potential technology pathways for SAF production in Sarawak.

“Both parties aim to establish a commercial-scale SAF value chain for local consumption or export by 2030,” they said.

The companies said the MoU will also focus on assessing expenditure requirements, identifying suitable project sites, and exploring opportunities for government subsidies and incentives in Malaysia and globally.

“Biomass is biological material that comes from plants or animals, including wood, agricultural residues and algae, while SAF is a cleaner type of jet fuel made from renewable resources like microalgae instead of fossil fuels.

“The biomass project could lead to downstream products, including green ammonia used in fertilisers, biogas and biofuels, renewable gases and liquid fuels for transportation and industry, and green chemicals, which are eco-friendly raw materials for industries like plastics and textiles,” they added.

The signing ceremony was witnessed by premier Abang Johari Openg and deputy premier Awang Tengah Ali Hasan at the state legislative assembly today.