Vandelay Ventures Sdn Bhd (VVSB) and Sulzer GTC Technology US Inc (Sulzer GTC) have entered into a Licensing Agreement and Basic Engineering and Technical Services (BEP/TS) Agreement for Sulzer GTC’s proprietary BioFlux® licensed solution for VVSB’s Sabah Maju Jaya Renewable Energy Industrial Complex (SMJ REIC) at Sapangar Bay, Kota Kinabalu, Sabah.
Launched on the 14th of February 2022 and officiated by the Honourable Chief Minister of Sabah, YAB Datuk Seri Panglima Hj Hajiji Haji Noor, the SMJ REIC will see the development of a Hydrogenated Vegetable Oil (“HVO”) facility in collaboration with a Sabah state-owned company, Suria Capital Holdings Berhad (“SCHB”).
The Complex, which will be housed on a 25-acre piece of land at Sapangar Port, will be developed in two phases.
Phase 1 for refurbishment and management of a 30,000 – 50,000MT bulking facility which is currently on-going and will be completed by end of November 2022.
Development of the HVO facility, which will feature an annual capacity of 250,000MT, to produce Sustainable Aviation Fuel (“SAF”) on phase 2.
SAF is a practical alternative to fossil-based jet fuel. It significantly reduces the CO2 emissions from air transportation and can be used as a drop-in fuel as of today, without any need to modify existing supply chain infrastructure, aircraft or engines.
The signing of the Licensing and BEP/TS Agreements offers VVSB the first mover advantage in becoming the first producer of SAF in Malaysia – with the facility slated to be completed and commissioned by end of 2024 – and one of the pioneers in the region.
The facility will utilize the proprietary BioFlux® process technology offered by Sulzer GTC in cooperation with Duke Technologies. The BioFlux® process is the only licensed technology with an innovative liquid phase full reactor design that maximizes hydrogen availability and eliminates the vapor recycle loop, which significantly reduces CAPEX and OPEX while improving yield and catalyst life.
Sulzer GTC was selected for its leading expertise in sustainable manufacturing technologies as well as the ability to provide the BioFlux® licensed solution. With 4 facilities globally utilizing the proprietary Bioflux® solution, Sulzer GTC has proven itself to be capable market player in the renewables industry.
VVSB and Sulzer GTC have entered into an agreement to forge a strategic partnership in the development of the state-of-the-art technology in Malaysia and will continue to expand their collaboration in the region.
Mohar Onn, Chief Executive Officer at Vandelay Ventures says: “Our goal to build an energy complex to help drive forward Malaysia’s decarbonisation efforts and economic development needs to be backed by state-of-the-art technology. Sulzer’s proprietary Bioflux® technology provides up to 30% reduction of GHG emissions as compared to other readily available technologies globally and we are proud to be strategic partners with a reliable and experienced partner like them to become the first SAF producer in Malaysia.”
Sander van Donk, Senior Vice President & Business Unit Head at Sulzer GTC, comments: “We are delighted to be part of this project which marks the first manufacturing facility for SAF in Malaysia and we are very proud to be the provider of the technology. Being selected by Vandelay Ventures as the trusted partner for the technology makes us very honoured and we hope to have more to follow. This is the first milestones in the strategic partnership between the two organisations and we are ever ready to provide support for our projects together moving forward.”