Energy Giants Race to Capture the SAF Market in Singapore and Malaysia

With policies across Southeast Asia now set, energy companies have begun a frantic scramble to secure their positions. The most striking capital movements are occurring in the field of Sustainable Aviation Fuel (SAF).

The "Blockbuster" Project in Sabah

On April 6, 2026, Singapore-listed Oiltek and Brunei's BioSeaga Industries announced a partnership to invest $350 million in an SAF plant in Sabah, Malaysia.

Key Highlights

This facility won't compete for food resources; instead, it is designed to process palm oil mill effluent and used cooking oil. With a designed capacity of 300 metric tons per day, it is an absolute behemoth in the world of SAF.

The Business Model

Oiltek is acting not just as an investor but has also secured the Engineering, Procurement, and Construction (EPC) contract through its subsidiary. This "investor-plus-builder" approach allows them to capture value across the entire industry chain. The project marks a significant step in Sabah's transition from a simple palm oil producer to a green energy hub for Southeast Asia.