Abang Johari said Sarawak plans to upscale the cultivation of microalgae to 1,000 acres to produce about 500,000 tonnes per annum of crude algae oil or renewable oil.
KUCHING (May 24): Sarawak has plans to scale up the cultivation of microalgae to 1,000 acres to produce about 500,000 tonnes per annum of crude algae oil or renewable oil, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.
He told the State Legislative Assembly (DUN) today that this can be equated to about 10,000 barrels of oil per day with about 37 per cent extraction rate of crude algae oil from the algae biomass.
“This may mean we do not have to look for oil anymore offshore or onshore and we can have our ‘farmers’ grow oil more sustainably. The unit cost per barrel is below US$50 and today if sold to a biorefinery, it might fetch around US$110 per barrel because it’s green oil.
“As such, this innovative technology will not only be a valuable addition to drive our economy, but also a significant contribution towards achieving our Green Economy agenda for 2030 and also become a new stream of revenue for Sarawak,” he said in his ministerial winding-up speech.
He pointed out that microalgae offer great potential to produce Sustainable Aviation Fuel (SAF), which is crucial to the aviation industry to achieve net zero emissions by 2050.
According to him, he has just come back from Langkawi International Maritime and Aerospace (LIMA) exhibition using aircraft powered by SAF, from a joint venture between Petronas and SEDC Energy.
“It is the world’s first SAF produced using algae. This clearly proves Sarawak is able to produce safe and reliable SAF for commercial use.
“I believe microalgae is a renewable source that can offer us a sustainable solution that does not compete with food sources. Here in Sarawak, there is enough sunlight, warm tropical climate and abundance of seawater that provides the right condition to continuously farm the oil source sustainably,” he said.
Abang Johari, who is also Minister of Energy and Environmental Sustainability, said currently there are two facilities that are cultivating algae with different technologies.
The first facility, on solar platform, is a collaboration between Sarawak Energy, Sarawak Biodiversity Centre, Eneos Corporation and Chitose Group from Japan at Sejingkat.
On the other facility, he said it is employing the use of tanks and sea water and is a collaboration between SEDC Energy and Petronas in Demak Laut.
“Sarawak has taken a progressive step to explore microalgae as a potential source of renewable energy.
“Sarawak Biodiversity Centre in collaboration with Sarawak Energy Berhad as well as Chitose Laboratory and ENEOS Corp from Japan has established the world’s largest mass microalgae biomass production facility, Chitose Carbon Capture Central (C4), spanning about five hectares in Sejingkat, Kuching.
“The C4 will tap into the exhausted gas containing carbon dioxide (CO2) from the Sejingkat Coal Power Plant to grow algae in a carbon circular economy. This is the first of its kind in Malaysia to demonstrate the industrial-scale utilisation of flue gas to enhance algae production,” he said.
Explaining further, he said this 5-hectare scale facility will act as “liquid trees” to capture CO2 while functioning as a natural purifier by releasing oxygen through photosynthesis.
“I believe that microalgae or ‘lumut’ is an industrial crop that can help to expand and grow our economy and serve as a model to achieve our aspirations while preserving our environment. This facility will also serve as part of net zero emissions efforts with an expected 700 tonnes of CO2 absorbed by the algae biomass,” he added.
He also said the facility will produce around 350 tonnes of algae biomass annually, which will be transformed into high-quality products such as food and feed, cosmetics, and pharmaceutical ingredients.
He pointed out the commercialisation of algae has only just begun and significant growth in this industry is anticipated with the Chitose group planning to expand the farm to 100 hectares in the next three years and to achieve 2,000 hectares by 2030 in Sarawak.
“We expect to create up to 5,000 new job opportunities and decarbonise about 200,000 tonnes of carbon annually,” he said.
Abang Johari also said microalgae offers other potential for innovative and sustainable product development in the food industry.
“We will continue to pursue research on microalgae on their nutritional and medical benefits,” he said further.
He pointed out many algae species have been found to have tremendous health benefits, and spirulina is a good example of a superfood.
“Spirulina is packed with essential nutrients, including vitamins, minerals and antioxidants, which make it a popular supplement for health-conscious individuals. But beyond spirulina, we are also looking into other algae species for their potential medical applications.
“For instance, some algae have been found to have antibacterial and antiviral properties, which can help in the fight against infectious diseases. Additionally, algae may be used to reduce inflammation, detoxify the body, boost the immune system, and even aid in weight loss,” he said.