Straits Energy Resources Unit Gets Certified For Marine Biofuel Industry Entry

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  • The maritime industry is accelerating its transition to low-carbon fuels as part of the global decarbonization agenda.
  • DNV estimates that 250 Mtoe of biofuels would be required annually for shipping to fully decarbonize by 2050, necessitating a more than tenfold market expansion.
  • The European Union, the United Kingdom, Japan, and Singapore recognize and acknowledge ISCC accreditation.
  • The shipping industry is actively transitioning to alternative fuels and energy sources to align with the International Maritime Organisation’s 2023 greenhouse gas strategy.

International Sustainability And Carbon Certification

Bursa Malaysia-listed Straits Energy Resources Bhd said its subsidiary Tumpuan Megah Development Sdn Bhd is set to enter the marine biofuel trading and bunkering industry in the first quarter of 2024 after it was certified by the International Sustainability and Carbon Certification (ISCC EU) scheme.

The breakthrough comes as the maritime industry accelerates its transition to low-carbon alternative fuels, such as sustainable biofuels, as part of the global decarbonization agenda.

According to maritime industry adviser DNV, global production of sustainable biofuels is expected to grow from 11 million tonnes of oil equivalent (Mtoe) per year to 23 Mtoe by 2026.

Industry Expansion Imperative

However, DNV estimates that 250 Mtoe of biofuels would be needed yearly if shipping, using mostly biofuels, was to decarbonize by 2050 fully. This would imply a more than tenfold expansion of the market.

Tumpuan Megah is the first Malaysian industry player to achieve ISCC EU certification as a biofuel supplier and trader, spearheading the industry’s efforts to lower shipping’s carbon footprint.

With ISCC EU certification, maritime industry players can exhibit compliance with the sustainability and GHG emission-saving criteria of the European Union (EU).

Global Recognition And Compliance

This includes the stringent requirements established by the EU Renewable Energy Directive (RED II) to classify biofuels as sustainable. The European Union, the United Kingdom, Japan, and Singapore recognize ISCC accreditation.

Straits Energy Resources managing director Datuk Seri Ron Ho Kam Choy said shipping is the least carbon-intensive method to move products, compared to air travel and road transportation.

The shipping industry has been transitioning to alternative fuels and energy sources to reduce environmental impact, in line with the International Maritime Organisation’s 2023 greenhouse gas strategy.

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Source: THE EDGE MALAYSIA

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