Straits Energy gains ISCC EU certification

STRAITS Energy Resources Bhd subsidiary, Tumpuan Megah Development Sdn Bhd, has successfully obtained certification from the International Sustainability and Carbon Certification (ISCC EU) scheme.

This accomplishment positions the company to make its foray into the marine biofuel trading and bunkering business in the first quarter of 2024 (1Q24).

The move is strategically timed as the maritime industry undergoes a significant shift towards low-carbon alternative fuels, particularly sustainable biofuels.

Straits anticipates potential earnings growth from the sales of these biofuels as the industry aligns with global decarbonization goals. Tumpuan Megah’s ISCC EU certification marks a groundbreaking achievement, making it the first Malaysian entity in the industry to be certified as a supplier and trader of biofuels.

This accomplishment underscores the company’s commitment to spearheading efforts in reducing shipping’s carbon footprint.

As the maritime sector intensifies its commitment to alternative fuels, the demand for sustainable biofuels is poised to surge.

According to maritime industry advisor DNV, global production of sustainable biofuels is projected to double from 11 mega tonnes of oil equivalent (Mtoe per year to 23 Mtoe by 2026. Should the shipping industry fully embrace biofuels for decarbonisation by 2050, an estimated 250 Mtoe of biofuels annually would be required, signifying substantial market growth.

The ISCC EU certification allows Tumpuan Megah to demonstrate compliance with the sustainability and greenhouse gas emission-saving criteria outlined by the European Union (EU).

This includes adherence to the EU Renewable Energy Directive (RED II), which sets stringent guidelines for classifying biofuels as sustainable.

The ISCC certification is recognised in key energy markets such as the EU, UK, Japan, and Singapore.

In this context, he said, sustainable biofuels, with significantly lower GHG emissions than fossil fuels, are expected to play a crucial role.