Straits Energy unit secures ISCC EU certification
KUALA LUMPUR: Straits Energy Resources Bhd is set to enter the marine biofuel trading and bunkering business in the first quarter after its wholly-owned unit, Tumpuan Megah Development Sdn Bhd, was awarded a certification from the International Sustainability and Carbon Certification (ISCC EU) scheme,
Managing director Datuk Sri Ron Ho Kam Choy said this expansion was expected to be a key contributor to the company’s future earnings growth.
Tumpuan Megah is the first Malaysian industry player to achieve the ISCC EU certification as a supplier and trader of biofuels.
With the certification, maritime industry players can demonstrate compliance with the European Union (EU) sustainability and greenhouse gas (GHG) emission-saving criteria.
It includes the EU Renewable Energy Directive (RED II), which has set strict guidelines for which biofuels can be considered sustainable.
Ho said the certification was recognised in key energy markets, including the EU, the United Kingdom, Japan, and Singapore.
“Compared to road transport and aviation, shipping is the least carbon-intensive way to transport goods. However, the shipping industry has begun transitioning to alternative fuels and energy sources to reduce its impact on the environment, in line with the International Maritime Organisation’s (IMO) 2023 Greenhouse Gas Strategy.
“The IMO has set an industry target to reduce GHG emissions
According to an industry expert, the shipping industry will need an estimated 250 million tonnes of oil equivalent of biofuels annually if it were to decarbonise fully by 2050.
by at least 40 per cent by 2030, up from 2008 levels.
“For these reasons, the market for sustainable marine biofuels is growing at an explosive rate,” he said.
Ho said according to a maritime industry adviser, global production of sustainable biofuels was expected to grow from 11 million tonnes of oil equivalent (mtoe) per year to 23 mtoe by
2026.
However, if shipping were to decarbonise fully by 2050 primarily using biofuels, he estimated that 250 mtoe of biofuels would be required annually.