KOTA KINABALU: The Sabah Maju Jaya Renewable Energy Industrial Complex (SMJREIC) valued at RM1 billion will be constructed on a 10ha piece of land in the Sepanggar Bay Container Port.
Once completed, it will house a centralised edible oil bulking terminal with a capacity of 30,000 metric tonnes.
And it is also the first palm oil refinery complex with a capacity of 100,000 metric tonnes per annum as well as a hydrogenated vegetable oil (HVO) plant, the first in Malaysia with a capacity of 250,000 metric tonnes per annum producing sustainable aviation fuel (SAF).
The complex and its ancillary facilities and industries are estimated to generate approximately 10,000 new job opportunities for the people of Sabah, said Chief Minister Datuk Seri Hajiji Noor.
The project will be expedited by Suria Capital Holdings Bhd in collaboration with Vandelay Ventures Sdn Bhd and partners via a memorandum of understanding (MoU) signed and witnessed by the Chief Minister at Sabah International Convention Centre (SICC) here.
Vandelay partners include Sawit Kinabalu and Sabah Land Development Board as the raw material supplier; Sulzer GTC Technology as the technology provider; and, Thinkat Advisory Sdn Bhd as the financial partner.
"I am happy that Suria Capital Holdings Bhd has added another promising investment portfolio to the list of successful private-driven ventures in the state. I look forward to seeing the fruition of this MoU in the near future," said Hajiji.
The endeavour will enhance the economic growth of the state, generate job opportunities, and bring in new technologies into Sabah, he said.
"As the chief minister of Sabah, I am glad that this collaboration involves Suria Capital Holding, which is one of the state's most reputable public limited companies, as they will play a big role in helping to ensure this project is viable and implemented successfully.
"The state government welcomes the private sector's role in fuelling the economy.
"We can see, for example, the robustness of the property sector; the re-surging of the oil and gas industry; and the re-planting of trees in the forestry sector.
"A greater push in private-driven initiatives will boost the economic momentum in these industries; spur the flow of investments; enhance overall economic diversification; increase wider economic opportunities and create related spillovers," he said.
Under the five-year Hala Tuju Sabah Maju Jaya (SMJ) development plan launched by the Gabungan Rakyat Sabah (GRS) government in March 2020, the importance of green sustainability is high on the agenda as it not only involves environmental issues and global warming phenomenon, but also an asset for economic development and state revenue.
"In the ensuing months, we have attracted high-impact investments in the agricultural, industrial and tourism sectors.
"Last month, we signed deals for new investments – including an innovative solar glass manufacturing and a large-scale herbs plantation which are expected to generate good returns in investment, and create job opportunities," said Hajiji.
"I am also happy that as of June of last year, Sabah has secured RM4.4 billion worth of foreign investments, the third-largest in the country.
"I have reminded that, for as long as we continue to make Sabah as an attractive alternative investor-friendly destination for investment, we are on track to see massive transformation in our Halatuju SMJ journey."
Hajiji said Sabah is endowed with an abundance of renewable energy sources that have the potential to offer strong prospects of contributing significantly to both the state and nation's transformation into a high value-added economy.
"The state government has been aggressively pushing its agenda in encouraging renewable energy and development of clean energy by implementing programmes that would help promote economic activities and accelerate economic growth and will ultimately shape and strengthen Sabah's renewable energy and green industry sector.
"Besides providing the opportunity to use energy efficiently while creating a better environment via the use of an integrated and a flexible energy system that increases the energy-saving ratio, green technology also offers other environmental benefits including the enhancement of protection to ecosystem and biodiversity, improved air and water quality, and reduction of solid wastes," he said.
Hajiji said both the state government and private sector have to take significant moves that focused on the benefits of green technology due to the current global emphasis on climate change and sustainable living.
Renewable energy was one of the important areas of green technology, therefore greater effort is required to encourage the utilisation of renewable resources as alternative means of generating energy, he said.
"The emphasis on renewable energy follows Malaysia's initiative in transforming the energy sector that promotes energy efficiency," he said.