Latest news with #UCO
Asia News Network
2 days ago
- Business
- Asia News Network
Greater oversight needed over used cooking oil in Malaysia
July 17, 2025 PETALING JAYA – As more Malaysians turn to selling used cooking oil (UCO) for extra income, stakeholders have raised concerns over how some may exploit this trend by selling new, unused oil as UCO. The government too is tightening oversight of UCO exports to reinforce governance, prevent fraud and maintain Malaysia's credibility as a trusted supplier. UCO collecters say there have been cases where some individuals try to sell new cooking oil under the guise of used oil. ALSO READ: 'We have encountered a few suspicious cases in the past,' said Hillton Lee, co-founder of Recircle, a company that simplifies recycling items, such as UCO, through a digital app. 'Such cases usually come through our customer service touchpoints or directly from collection partners.' In these instances, individuals inquire about buy-back rates and provide information for collection. 'As part of our evaluation process, we request images for verification. Some submissions clearly showed packaged or unused oil, raising immediate red flags,' Lee said. These requests are rejected as they violate industry regulations. 'Attempting to pass off new oil as used undermines the sustainability goals we're working to achieve. We take these matters seriously to ensure the transparency and credibility of the buy-back system,' she said. Subsidised cooking oil is sold at RM2.50 per 1kg packet, which could see some individuals resell it for up to RM3.50 per kilo to UCO collectors. According to the Association of Used Cooking Oil Development Malaysia, UCO is typically sold in bulk to collectors who transport it to depots for pretreatment by licensed companies. After pretreatment, the UCO is sent to biodiesel manufacturers for conversion into biodiesel. The International Sustainability Carbon Certification (ISCC) guidance notes that the degraded properties of UCO makes it particularly suitable for specific biodiesel conversion processes. In contrast, virgin cooking oil is not classified as waste, and its use undermines the sustainability goal of transforming waste into energy. It also competes with the food supply and increases land-use emissions, counteracting the waste-to-energy conversion purpose. Dr Chatichai Chong, Arus Oil's chief marketing officer, noted that UCO generally looks darker and has higher acidity compared to virgin oil. 'However, certain oil grades also have a darker tone,' he said. Arus Oil's main UCO collections come from households, restaurants and processing factories. 'However, we have yet to encounter fraudulent cases ourselves,' Chong said. Arus Oil is licensed under the ISCC, requiring them to declare each point of origin for the used cooking oils. 'We also declare our monthly volume with the Malaysian Palm Oil Board (MPOB),' he added. As part of measures to prevent fraud, government agency MPOB is increasing oversight of UCO exports to strengthen governance. 'The board is reviewing standards and policies to better distinguish UCO from by-products like sludge palm oil (SPO), focusing on export integrity,' said MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir. A key initiative is the Sawit Intelligent Management System (SIMS), a digital platform enhancing traceability from collection to export through real-time data logging and source verification. 'It helps detect irregularities and supports enforcement,' Ahmad Parveez said. Exporters must meet international certification standards, such as ISCC or equivalent frameworks. Misuse of subsidised cooking oil, including its diversion into the UCO export stream, is strictly prohibited under MPOB regulations, with offenders facing penalties. When contacted, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said it is critical to review UCO and SPO policies to avoid discrepancies and meet strict sustainability demands from overseas buyers. He added that MPOB continues to work with other regulators to monitor the industry closely.
The Star
3 days ago
- Business
- The Star
Subsidised cooking oil misused for profit
Ready for collection: A hawker in George Town, Penang straining the used cooking oil as she pours it into a container to store before selling it. — LIM BENG TATT/The Star PETALING JAYA: Although only used cooking oil (UCO) is meant to be collected for biodiesel production, some collectors are openly purchasing unused cooking oil, raising concerns about subsidy abuse and profiteering. 'We can buy it from you, whether it's used or not. The oil doesn't need to be mixed either. We will just collect it,' said a collector based in the Klang Valley. ALSO READ: Syndicates greasing the system Checks with another collector in Selangor revealed similar practices. 'As long as there's no water in the oil, it can be sold,' the individual said. UCO prices vary depending on market demand, ranging from RM2.50 to RM4 per kg. However, this price window has also created opportunities for illicit gains, especially when subsidised cooking oil, sold at RM2.50 per 1kg packet, is falsely passed off as used oil. Subsidised cooking oil is limited to three packets per customer. Yet industry insiders say some collectors, especially those with access to subsidised oil quotas, may be taking advantage of the system. 'Some retailers may hoard subsidised oil and sell it at inflated prices,' one insider revealed. 'A carton can go for around RM51, meaning each packet costs about RM3, still cheaper than unsubsidised cooking oil, which sells for about RM6 per kg.' Another industry player raised concerns over the number of informal collectors operating in the market. 'People have the right to earn a living, but buying subsidised oil and reselling it at higher prices, that is something else,' the industry player said. According to the Association of Used Cooking Oil Development Malaysia, UCO is typically collected in bulk and transported to licensed depots for pretreatment before being sent to biodiesel manufacturers for conversion. The International Sustainability and Carbon Certification guidelines state that the degraded properties of UCO make it particularly suitable for specific biodiesel production processes. In contrast, unused or virgin cooking oil is not classified as waste, and its use in biofuel manufacturing undermines sustainability goals of transforming actual waste into energy.
The Star
6 days ago
- Business
- The Star
Penang oil wastes a cleaner alternative to help power up jets
GEORGE TOWN: In a significant environmental initiative, Penang has transformed the way used cooking oil (UCO) is managed, converting what was once waste into valuable jet fuel. Last year, UCO collectors gathered enough oil to fill three tanker lorries, preventing it from polluting the sea and setting a benchmark in sustainability with the help of major players like PETRONAS and a network of community collection points. In collaboration with PETRONAS, Penang Island City Council (MBPP) orchestrated the collection of 19,754.45kg of UCO from public stations and 7,332.65kg from schools on the island and mainland. By June this year, 18,950.72kg had already been amassed from public collection points, with PETRONAS purchasing the oil at RM3 per kg. These figures exclude UCO collected by private companies from commercial establishments such as restaurants and hotels, indicating a broader impact. 'Our data shows an encouraging increase in people selling their used cooking oil,' said Xavier Sebastian, MBPP's executive officer for corporate communications and public relations. 'More people are recognising the environmental benefits and financial incentives. Recycling UCO can reduce pollution and protect waterways and drainage systems. 'The initiative is particularly impactful in schools, where students receive hands-on environmental education, and the wider community becomes aware of the harm this waste can cause if improperly disposed of.' MBPP mayor Datuk A. Rajendran highlighted that the initiative has led to fewer instances of clogged drains due to improper oil disposal. 'The open market system permits any licensed company to collect waste, including UCO,' he explained. 'Businesses must not simply pour used oil down the sink or into drains. They are required to have grease traps and authorised agents like PETRONAS purchase the oil at RM3 per kg.' Josephine Tan, general manager of the Penang Green Council (PGC), emphasised the council's role in supporting the initiative through public education, stakeholder engagement and awareness campaigns. 'What makes the initiative more significant is that the collected UCO is recycled into Sustainable Aviation Fuel (SAF), a cleaner alternative to conventional jet fuel,' she said. 'SAF contributes to global decarbonisation goals by reducing carbon emissions in the aviation sector – one of the most challenging industries to decarbonise. 'By promoting responsible disposal and circular solutions like SAF production, Penang is taking meaningful steps toward climate action and sustainable living.' Tan added that the PGC is working closely with local authorities and stakeholders to expand these efforts, aiming for a cleaner, greener future for Penang.
The Star
6 days ago
- Business
- The Star
Greater oversight needed over used cooking oil
Environment-friendly: Hawker Che Chin Seng, 59, weighing his used cooking oil for sale. He collected RM33 after the first transaction at the Tanjung Bungah public market in Penang by doing it the right way. — ZHAFARAN NASIB/The Star PETALING JAYA: As more Malaysians turn to selling used cooking oil (UCO) for extra income, stakeholders have raised concerns over how some may exploit this trend by selling new, unused oil as UCO. The government too is tightening oversight of UCO exports to reinforce governance, prevent fraud and maintain Malaysia's credibility as a trusted supplier. UCO collecters say there have been cases where some individuals try to sell new cooking oil under the guise of used oil. ALSO READ: 'We have encountered a few suspicious cases in the past,' said Hillton Lee, co-founder of Recircle, a company that simplifies recycling items, such as UCO, through a digital app. 'Such cases usually come through our customer service touchpoints or directly from collection partners.' In these instances, individuals inquire about buy-back rates and provide information for collection. 'As part of our evaluation process, we request images for verification. Some submissions clearly showed packaged or unused oil, raising immediate red flags,' Lee said. CLICK TO ENLARGE These requests are rejected as they violate industry regulations. 'Attempting to pass off new oil as used undermines the sustainability goals we're working to achieve. We take these matters seriously to ensure the transparency and credibility of the buy-back system,' she said. Subsidised cooking oil is sold at RM2.50 per 1kg packet, which could see some individuals resell it for up to RM3.50 per kilo to UCO collectors. According to the Association of Used Cooking Oil Development Malaysia, UCO is typically sold in bulk to collectors who transport it to depots for pretreatment by licensed companies. After pretreatment, the UCO is sent to biodiesel manufacturers for conversion into biodiesel. The International Sustainability Carbon Certification (ISCC) guidance notes that the degraded properties of UCO makes it particularly suitable for specific biodiesel conversion processes. In contrast, virgin cooking oil is not classified as waste, and its use undermines the sustainability goal of transforming waste into energy. It also competes with the food supply and increases land-use emissions, counteracting the waste-to-energy conversion purpose. Dr Chatichai Chong, Arus Oil's chief marketing officer, noted that UCO generally looks darker and has higher acidity compared to virgin oil. 'However, certain oil grades also have a darker tone,' he said. Arus Oil's main UCO collections come from households, restaurants and processing factories. 'However, we have yet to encounter fraudulent cases ourselves,' Chong said. Arus Oil is licensed under the ISCC, requiring them to declare each point of origin for the used cooking oils. 'We also declare our monthly volume with the Malaysian Palm Oil Board (MPOB),' he added. As part of measures to prevent fraud, government agency MPOB is increasing oversight of UCO exports to strengthen governance. 'The board is reviewing standards and policies to better distinguish UCO from by-products like sludge palm oil (SPO), focusing on export integrity,' said MPOB director-general Datuk Dr Ahmad Parveez Ghulam Kadir. A key initiative is the Sawit Intelligent Management System (SIMS), a digital platform enhancing traceability from collection to export through real-time data logging and source verification. 'It helps detect irregularities and supports enforcement,' Ahmad Parveez said. Exporters must meet international certification standards, such as ISCC or equivalent frameworks. Misuse of subsidised cooking oil, including its diversion into the UCO export stream, is strictly prohibited under MPOB regulations, with offenders facing penalties. When contacted, Deputy Plantation and Commodities Minister Datuk Chan Foong Hin said it is critical to review UCO and SPO policies to avoid discrepancies and meet strict sustainability demands from overseas buyers. He added that MPOB continues to work with other regulators to monitor the industry closely.
Business Wire
11-07-2025
- Business
- Business Wire
Eazy Grease Completes Fourth Acquisition with DHT Grease Solutions Purchase, Accelerating Used Cooking Oil Collection Expansion Across the Southeast Region
TALLAHASSEE, Fla.--(BUSINESS WIRE)--Eazy Grease announced today the acquisition of DHT Grease Solutions, a locally-owned grease recycling company that has served the Tallahassee area since 2014. This marks Eazy Grease's fourth acquisition as the renewable energy company expands its territory and increases UCO collection volume across the Southeast. DHT Grease Solutions was the only locally-owned recycler of used cooking oil in the North Florida/South Georgia area. According to the previous owner, 90% of restaurants in the region currently use publicly traded companies for used cooking oil collection, creating opportunities for local service providers who encourage businesses to shop local. "We're committed to providing DHT's customers the same local service they've always received," said Artem Kamalov, CRO of Eazy Grease. "This acquisition allows us to expand our reach while maintaining the personal, local approach that restaurants in the Tallahassee area value." Eazy Grease will take over DHT's existing facility to ensure swift, uninterrupted service to all current customers. The company plans to leverage DHT's established relationships while implementing enhanced operational capabilities. This acquisition represents Eazy Grease's fourth strategic purchase in just two years, demonstrating exceptional growth velocity in the biodiesel feedstock sector. The company's rapid expansion includes: Relentless Renewables (Tampa Bay) in 2023, followed by Daytona Biodiesel (Central Florida) and CleanFri (South Florida) in 2024. This aggressive M&A strategy has quickly established Eazy Grease as a dominant force in Florida's used cooking oil collection market. The rapid territorial expansion increases UCO collection volume significantly while extending the company's brand reach across the renewable energy corridor. This growth trajectory positions Eazy Grease as an attractive partner for major biodiesel producers and renewable energy companies seeking reliable feedstock suppliers. The used cooking oil collection industry is experiencing increased interest from private equity firms and energy sector leaders as demand for renewable diesel and biodiesel feedstock continues to surge. About Eazy Grease Eazy Grease is a leading used cooking oil collection company serving restaurants and food service establishments throughout the US. The company converts waste cooking oil into valuable biodiesel feedstock, supporting renewable energy production and the circular economy.
