Kota Kinabalu: Sabah is positioning itself as a hub for sustainable energy with Petra Seaga signalling interest in a RM1.4 billion (USD 300 million) investment to set up an integrated biorefinery complex in the State.
Speaking on behalf of Chief Minister Datuk Seri Hajiji Noor at the World Economic Forum 2026 in Davos, Invest Sabah Chairman Datuk Roger Chin said the facility would convert palm oil residue and other agricultural and forestry biomass into sustainable aviation fuel (SAF), biofuel, biochemicals, bioplastics, and renewable power.
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“The project is designed to follow circular economy principles, reusing energy, heat and by-products to reduce waste and improve efficiency.
“Sabah produces tens of millions of tonnes of biomass annually, much of which remains underutilised,” he said.
Chin said the biorefinery would allow the State to convert this material into higher-value products and new industries, rather than exporting raw materials or low-value outputs.
“This investment reflects confidence in Sabah’s long-term direction. It is not only about a single project, but about anchoring an ecosystem that could attract technology providers, research partners, logistics players, and downstream users over time,” he said.
The State is deliberately moving away from a purely resource-based economy, focusing instead on downstream processing, advanced manufacturing, and technology-enabled industries.
“Sustainable energy and the bioeconomy are central to this transition,” he said.
To support serious investments, he said, Sabah is strengthening infrastructure including water supply, energy reliability, transport, and industrial-ready land, while aligning policies to be more predictable and investor-friendly.
Chin noted that SAF is a growing priority across Asean as governments and airlines face pressure to decarbonise.
Sabah is well positioned to help meet regional demand, leveraging its biomass resources, geographic location, and industrial potential. The State’s longer-term ambition is to serve East Asia markets as well.
He also highlighted the decision of the Southeast Asia Sustainable Aviation Fuel Council to establish its headquarters in Kota Kinabalu, a development that could position Sabah as a regional platform for policy dialogue, industry coordination, and cooperation on sustainable aviation fuel.
Chin emphasised that Sabah evaluates all projects carefully and transparently. Any development will need to meet commercial, regulatory and sustainability standards.
“We welcome credible partners who take a long-term view, respect sustainability and are prepared to work collaboratively with local stakeholders.”
He underlined that Sabah does not seek attention for ambition alone, says “We seek partners who understand that long-term value is built where policy discipline, sustainability, and execution meet.”
