Petra Seaga Eyes RM1.4bil Biorefinery Investment in Sabah

Invest Sabah chairman Datuk Roger Chin (left) during the signing of SEASAF 2026 Declaration on the Establishment of the Southeast Asia Sustainable Avialtion Fuels Council here. - Pic courtesy of Invest Sabah

Petra Seaga, a renewable energy and bioeconomy company, is evaluating a RM1.4 billion biorefinery project in Sabah, a senior official said.

"Today, I wish to acknowledge the commitment expressed by Petra Seaga to establish a presence in Sabah and make a significant investment in the state's biomass and sustainable energy sector," Invest Sabah Bhd chairman Datuk Roger Chin said in a statement yesterday at the sidelines of the World Economic Forum 2026 in Davos.

He added that the state views the move as a sign of confidence but that "all projects must stand on their own commercial, regulatory, and sustainability merits."

Petra Seaga is evaluating an integrated biorefinery complex, using agricultural and forestry biomass, including palm oil residues, to produce sustainable aviation fuel, biofuels, biochemicals, bioplastics and on-site renewable power.

"What is being explored is not a conventional energy project," Chin said, adding that the model follows circular-economy principles where energy, heat and by-products are reused to minimise waste.

"Sabah welcomes the seriousness and scale of the intent involved," he said.

Chin said Sabah was well positioned for such a development due to its large biomass supply, and the state "is moving away from being solely a resource-based economy, and towards downstream processing, advanced manufacturing, and technology-enabled industries."

Meanwhile, Chin also said he was encouraged by the decision of the Southeast Asia Sustainable Aviation Fuel Council to establish its headquarters in Kota Kinabalu. "This is a significant development," he said.

He added that the council, with representation from across Asean, could position Sabah as a regional hub for policy dialogue, industry coordination and cooperation on sustainable aviation fuel.

"The Sabah State Government has made clear its support for the establishment of the council," Chin said, noting the move aligns with Sabah's ambition to be more than just a project location, but a regional platform for sustainability-led growth.

Source: www.nst.com.my