KOTA KINABALU (Aug 3): Used cooking oil (UCO) can now be sold to generate household income and produce sustainable aviation fuel (SAF) with the launching of the ‘From Fryer 2 Flyer: Used Cooking Oil Awareness Programme’ on Saturday.
The programme will also support the recycling agenda and reduce the rate of greenhouse gas emissions, in line with the country’s commitments to achieve net zero carbon emissions by 2025.
In this regard, Petronas Dagangan Berhad (PDB) has made several Petronas gas stations as UCO collection centres, to make it easier for people to send and sell their used cooking oil for RM2.50 per kilogram.
The nationwide initiative, which had started with only three Petronas gas stations around Klang Valley, has since expanded to 54 stations throughout the nation.
With this expansion, the Ministry of Plantation and Commodities (KPK) is targeting 500,000 kilogrammes of UCO to be collected and the participation of more than 100,000 people by end of this year.
In Sabah, three Petronas gas stations have been made as UCO collection centres, namely along Jalan Lintas in Kota Kinabalu, Batu 8 Labuk By-Pass in Sandakan and Jalan Utara in Tawau.
KPK Deputy Minister Datuk Chan Foong Hin, who officiated the State-level programme in collaboration with the Kota Kinabalu City Hall (DBKK) at the Petronas gas station along Jalan Lintas here on Saturday, said it will be expanded to other stations throughout the state.
Chan said his ministry protects the interests of the palm oil industry and small farmers through efforts to increase palm-oil based downstream products, in addition to supporting economic generation through a circular economy from palm oil biomass.
He said apart from raising awareness on economic and environmental benefits, organising such programmes will indirectly increase public awareness on the importance and direction of the palm oil and biofuel industries in Malaysia.
The deputy minister also suggested for a by-law to be enacted to obligate small traders and food hawkers around Kota Kinabalu to regularly manage their UCO by selling them to Petronas gas stations or UCO collection companies.
“Based on statistics from the Malaysian Palm Oil Board (MPOB), the amount of UCO collected in the state of Sabah is still low, which is only approximately 2,700 tonnes from January until June 2024.
“Overall, this amount does not even reach 1.5 percent of the total collection of UCO throughout Malaysia, which is around 200,000 tonnes in the same period.
“In addition, based on the MPOB survey, as much as 77 percent of the population do not recycle and throw away used cooking oil in the trash or less suitable ways.
“Through the organisation of today’s and future campaigns in Sabah, I hope that more Sabahans are aware of the importance of managing used cooking oil in the correct way.
“An increase in awareness among the general public will not only provide economic benefits to the people of this state, but also to the environment,” he said.
PDB General Manager, Strategy and Sustainability, Harlina Pikri said UCO is often thrown away, polluting the environment and clogging waterways.
Instead, she said these used cooking oil actually has great potential to be converted into biofuel, as through innovation and technology, the UCO collected from the nationwide initiative can be processed into cleaner fuel for airplanes or Sustainable Aviation Fuel (SAF).
Hence, she said the initiative will be an important milestone in reducing the aviation industry’s carbon footprint and bringing everyone one step closer to a more sustainable future.
“Since this initiative was launched last year, we have received a positive response from the community. To date, customers have received more than RM1 million in cashback! This not only eases their burden to some extent, but also shows the positive impact on the environment that we can achieve when all parties work together.
“Our goal is more stations so that more UCO can be collected, and more positive impact on the environment. It’s a win-win situation for everyone!
“We hope that with the expansion of this program, the culture of recycling used cooking oil will become easier and more beneficial, and we hope that we can continue to cooperate and achieve the goal of sustainable development,” she said.
Harlina added that Petronas is planning for the construction of an SAF refinery in Pengerang, Johor. Also present was Kota Kinabalu Mayor Dato’ Sri Dr Sabin Samitah.
KOTA KINABALU: Sabah is capable of contributing more to biomass and biofuel development, says Deputy Plantations and Commodities Minister Datuk Chan Foong Hin.
“However, due to low awareness, we are among the lowest contributors of used cooking oil (UCO) in the country,” he said during the Fryer 2 Flyer campaign here Saturday (Aug 3).
Chan said to increase participation among users in recycling used cooking oil for the purpose of sustainability, recycling and lowering greenhouse gas emissions, PETRONAS Dagangan Berhad (PDB) had in July last year launched its “Fryer 2 Flyer” campaign where selected gas stations collect UCO.
This campaign is a joint effort with the Plantations and Commodities Ministry.
Those who bring their UCO are paid RM2.50 per kg in Sabah, said Chan, adding that this price is lower than those in the peninsula because Sabah still enjoys subsidies on oil and fuel.
He said similar to the City Hall’s recent plastic bag reduction campaign beginning Aug 1, it is also hoped that a by-law for used cooking oil can be introduced.
“The City Hall is considering enacting a by-law for plastic bag usage, right? So I think they can also consider a by-law for used cooking oil disposal and recycling so that we can work better towards a low carbon city status for Kota Kinabalu,” he said.
For PETRONAS, the collected UCO can be turned into sustainable aviation fuel (SAF) while City Hall, as the partner for this campaign, will act as the movers for sustainable living in the city, said Chan.
The value of SAF is three times higher than normal aviation fuel price.
He said PETRONAS is targeting to collect some 500,000kg of UCO with the participation of over 100,000 users nationwide by year-end.
In Sabah, there are only two other Petronas fuel stations that offer UCO collection - Jalan Utara Tawau and Batu 8 Labuk, Sandakan, and these collection counters only open on Sundays.
MUMBAI, Aug 2 — India's palm and soybean oil imports surged to their highest levels in about a year in July, as refiners increased purchases following a price correction and in anticipation of a potential import duty hike, six dealers said on Friday.
Higher palm oil purchases by the world's biggest importer of vegetable oils will help reduce inventories in top producers Indonesia and Malaysia and support benchmark prices.
Palm oil imports surged 39 per cent in July from the previous month to 1.09 million metric ton, the highest since August 2023, according to estimates from dealers.
The refining margin was positive for palm oil in May and June, during which most buyers placed orders for July shipments, said Rajesh Patel, managing partner at edible oil trader and broker GGN Research.
Soy oil imports in the month jumped 43 per cent to 394,000 metric tons, the highest in 13 months, dealers said.
The imports also got a boost from expectations of a duty hike in the budget, which encouraged buyers to increase purchases, said Sandeep Bajoria, CEO of Sunvin Group, a vegetable oil brokerage.
Last week, Finance Minister Nirmala Sitharaman presented the budget for the 2024-25 financial year, although she didn't make any changes to the duty structure on edible oils.
India buys palm oil mainly from Indonesia, Malaysia and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia and Ukraine.
Sunflower oil imports fell 22 per cent in July from the previous month's record shipments to 364,000 metric tons, dealers said.
A surge in imports of palm oil and soy oil lifted the country's total edible oil imports by 21 per cent to 1.85 million tons, the second highest on record, as per dealers' estimate.
India on average has been importing 1.2 million tons of edible oil so far in the current marketing year, which began November 2023.
"The July imports could have been a record high, but berthing delays of eight to ten days at Kandla port prevented them from reaching that level," GGN Research's Patel said.
Industry body the Solvent Extractors' Association of India (SEA) is likely to publish its data on July imports by mid-August. — Reuters
PUTRAJAYA : The plantation and commodities ministry will embark on a nationwide tour to ensure that every state complies with international standards, including the European Union Deforestation Regulation (EUDR).
Its minister, Johari Ghani, said he underscored the importance of adhering to the standards, adding that non-compliance could affect the marketability of local agricommodity products at the international level.
“The ministry will visit each state because land issues in each state differ. Land regulations in Sabah, for instance, are not the same as in Kelantan.
Therefore, the states have asked the ministry to conduct a tour and engage with their land offices, to improve their understanding (of the standards), he told reporters after a meeting with state agriculture executive councillors at a hotel in Putrajaya today.
He said the tour, which will be carried out in the near future, will also involve industry players and government agencies so that they better understand the impact of non-compliance with international standards.
“We will do it as soon as possible, with the executive councils acting as coordinators to recommend invitees. We will present information on the EUDR, climate change, and sustainability as, ultimately, this is for the country’s benefit.
We want our products to command a premium in the future, he said.
Thirteen state agriculture exco members attended the meeting with Johari, during which they were provided information on environmental sustainability in the agricommodity sector.
KENINGAU: Sabah's cocoa-producing interior regions have strong potential to be further developed, says Plantation and Commodities Minister Datuk Seri Johari Abdul Ghani.
These areas include Sook, Tenom, Nabawan, and Sipitang.
"In the first quarter of this year, these areas produced 54 tonnes of dry cocoa beans, contributing 37.5 per cent of the national production total of 144 tonnes," he said after opening a post-harvest technology course and group strengthening programme here.
"Some farmers in these areas have achieved yields of over 1,000 kg per hectare per year, compared to the national productivity average of 100 kg per hectare per year," Johari added.
In 2023, the cocoa industry contributed RM8.2 billion in export revenue. As of May 2024, the export revenue from the cocoa industry has reached RM4.8 billion, approximately 58 per cent of last year's total.
"Currently, there is a significant global shortage of cocoa beans due to reduced production in major cocoa-producing countries like Ivory Coast and Ghana," Johari said.
In response to the increasing demand and high prices for cocoa beans, Johari said the Malaysian Cocoa Board (LKM) has initiated several measures, including the start of the cocoa farm rehabilitation programme from this year until 2026.
He said that the programme will involve 2,084 farmers and 1,344 hectares of cocoa cultivation in Sabah.
"The board will also provide infrastructure support, such as constructing mini cocoa processing facilities that convert wet cocoa beans into high-quality dry cocoa beans."
"LKM is actively conducting research and developing technologies using the Internet of Things or IoT, automation, and mechanisation. The latest technology is expected to enhance farm management efficiency, increase production, and reduce reliance on manual labour."
Johari also added that the board is promoting large-scale cocoa cultivation to estate operators to increase national cocoa bean production and meet the country's cocoa grinding needs.
LKM is also collaborating with several agencies and plantation companies, including United Malacca Bhd and Malaysia Kuwaiti Investment Corporation, for large-scale cocoa cultivation of approximately 400 hectares in Sabah's interior.
He added that the cocoa-growing community in Keningau and Tenom has become a source of cocoa beans for bean-to-bar and single-origin chocolate producers, such as Jaws & Claws Chocolate and Nestlé, which recently launched the Kit Kat Borneo product in May.
Johari and his deputy Datuk Chan Foong Hin also attended the opening of the RM70,000 mini-cocoa processing facility in Kampung Liau, which can process up to 500 kg per batch.
TAGS: Cocoa, industry, Plantation, commodities, Datuk Johari Abdul Ghani, Chan Foong Hin, Keningau, Sabah