KUALA LUMPUR: Sustainable marine biofuels has the potential to significantly mitigate carbon emissions and decrease the overall carbon footprint of maritime operations within the shipping industry, according to Datuk Sri Ron Ho Kam Choy, managing director of Straits Energy Resources Berhad (SERB).
He said that although sustainable marine biofuels hold significant promise, it's crucial for shipping industry participants to validate the sustainability of the bio-content within their fuels.
Ho highlighted the pivotal role of International Sustainability and Carbon Certification (ISCC EU) certification in ensuring the sustainability of feedstock, maintaining traceability throughout the supply chain, and verifying credible emission reductions.
Ho noted that as Malaysia's inaugural ISCC EU-certified supplier and trader of maritime biofuels, SERB is strategically positioned to contribute significantly to fostering the industry's sustainable expansion.
"As demand for marine biofuels accelerates, we expect this business to be a key contributor to our future earnings growth," he said in a statement on Tuesday.
He noted the shipping industry's transition to alternative fuels and energy sources to reduce environmental impact in alignment with the International Maritime Organisation's 2023 greenhouse gas strategy.
ISCC EU certification enables maritime industry players to demonstrate compliance with the sustainability and greenhouse gas emission-saving criteria of the European Union (EU) and the stringent requirements of the EU Renewable Energy Directive (RED II).
SERB's subsidiary, Tumpuan Megah Development Sdn Bhd, became the first Malaysian industry player to achieve ISCC EU certification as a supplier and trader of biofuels, leading efforts to lower shipping's carbon footprint and spearheading the industry's transition to sustainable practices.
This milestone also paved the way for SERB's entry into the rapidly expanding marine biofuel trading and bunkering industry.
Tumpuan Megah recently supplied approximately 4,500 metric tonnes of ISCC EU B24 marine biofuel to a containership at the Port of Tanjung Pelepas in Johor.
The containership, operated by one of the world's top three largest integrated logistics companies, received the bunkering operation on April 25.
"We believe this was the first delivery of certified sustainable marine biofuel by a Malaysian supplier, underscoring our commitment to support the industry's transition to alternative fuels and reduce its impact on the environment," Ho said.