Premier proposes aviation fuel venture for SALCRA

KUCHING: Sarawak Land Consolidation and Rehabilitation Authority (SALCRA) has been encouraged to explore the potential of producing sustainable aviation fuel (SAF) from oil palm by-products as part of its future business expansion.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the initiative could open up a new revenue stream for SALCRA while positioning the organisation to participate in the growing demand for cleaner aviation fuel.

He suggested that SALCRA undertake research into the possibility of combining free fatty acids derived from palm oil with hydrocarbons to develop aviation fuel.

“I suggest that research be carried out on a hybrid between fatty acids and hydrocarbons. If these can be combined, it could become a new product for aviation,” he said during SALCRA Golden Jubilee dinner on Monday (Oct 12) night.

Abang Johari pointed out that the aviation industry was increasingly moving towards cleaner energy alternatives, citing Singapore’s use of recycled cooking oil as a feedstock for SAF.

He said SALCRA, with approximately 55,000 hectares of plantation land, could potentially leverage its existing resources to venture into the industry.

“Imagine if we succeed in producing what we call hybrid aviation fuel. SALCRA could become the Aramco of Sarawak,” he said, drawing a comparison with Saudi Arabia’s major oil company.

However, Abang Johari stressed that the proposal remained an idea requiring further research, particularly into the chemical processes involved.

“This is technology. I am only putting forward the idea, but you can work on the chemical reaction between the two. The moment you do that, you transform the whole SALCRA and it becomes an additional business,” he said.

Apart from aviation fuel, Abang Johari also highlighted opportunities to convert oil palm waste into fertilisers, biomass and other value-added products.

He said Sarawak’s legislative framework for waste-to-energy development could provide further opportunities for the organisation to diversify beyond its traditional plantation activities.

“I hope that SALCRA would continue exploring new technologies and business models as it prepares for its next 50 years,” he added.