KUCHING: Sarawak will begin commercial production of sustainable aviation fuel (SAF) from microalgae next year, and by 2030, the largest state of Malaysia aims to produce 100,000 barrels of SAF per day.
Deputy state secretary Datuk Dr Muhammad Abdullah Zaidel said microalgae grown in waters mixed with carbon dioxide would be used to produce SAF, which is increasingly adopted by global airlines.
SAF, which reportedly could reduce carbon emissions by about 80%, have powered some 450,000 flights by mid-June 2022. AirAsia, for example, is also exploring options to introduce SAF into its fuel mix before 2025.
Petroliam Nasional Bhd (PETRONAS) is also investing in SAF technology from crude algae oil that is being developed in Sarawak.
The use of carbon dioxide for the cultivation of microalgae comes at a time when Sarawak is also exploring more business opportunities in the multi-billion-dollar carbon capture, utilisation and storage (CCUS) industry.
“We have identified 10,000 acres of land in Bintulu for the purpose of algae plantation. About 1,000 acres of algae can produce 10,000 barrels of SAF a day, so with 10,000 acres, we can produce 100,000 barrels by 2030,” he said.
Muhammad Abdullah delivered a special address on Sarawak’s development plan during Affin Group’s “Propelling Malaysia Forward 2023: Sarawak Series” conference.
He also highlighted that the Sarawak state government is actively pursuing the “new economy” as part of its efforts to double the state’s economic size to RM282bil by 2030.
“Some examples of the new economy are hydrogen energy generation, digital economy, green economy and circular economy.
“Sarawak is probably the only state government that has a special portfolio for the new economy, which is held by our Premier, Tan Sri Abang Johari Openg,” he said.
Bursa Malaysia chairman Tan Sri Abdul Wahid Omar, who also spoke in the conference, sees Sarawak as a “leader” in the green economy, including in the area of carbon credits which the stock exchange operator began to promote since late-2022.
“Sarawak has huge renewable energy capacities including hydropower.
“Not only that, the state is increasing its footprint in the green hydrogen area, which makes Sarawak a leading state in what we call as the green economy,” he said, adding that Sarawak will be a key beneficiary of the National Energy Transition Roadmap (NETR).
Phase Two of NETR was launched on Aug 29.
According to Abdul Wahid, Malaysia will require about RM500bil at the national level to address climate change issues.
“This will require funding and will include projects in Sarawak as well.
“Based on our studies, we found that 57% of those projects will be viable on their own, without any carbon pricing.
“Another 37% will require some carbon pricing, up to the price of RM300 per tonne.
“The balance 6% will require government or multilateral funding,” he said.
Moving forward, Muhammad Abdullah urged the private sector to take up a greater role in the investments within Sarawak.
He said investors can rest assured that there will be no “Little Napoleons” in the Sarawak state government.
He also voiced his commitment that investors will be well facilitated and that all business-related administrative matters will be handled transparently.
“Our Premier emphasises good governance and integrity in the government of the day,” according to him.
Affin Bank Bhd president and chief executive officer Datuk Wan Razly Abdullah opined that Sarawak’s growth is highly crucial to maintain Malaysia’s upward trajectory.
“Sarawak is a key player and an impetus of growth to help carry Malaysia into the future,” he said.
Referring to the World Bank’s findings, Wan Razly pointed out that Sarawak has already achieved the “high-income” status with a gross national income per capita of US$13,205 (RM61,499) in 2022.
This accomplishment, according to him, underscores Sarawak’s economic resilience and its important role for Malaysia’s growth.
Wan Razly also described the “Propelling Malaysia Forward 2023: Sarawak Series” conference as “timely”.
“It allows us to delve into opportunities in the Sabah and Sarawak market that not only drive sustainable growth but also encourage innovation and foster collaborative efforts.
“Additionally, we view this market outlook as an opportunity to fortify our commercial ties with existing clients while also extending our outreach to encompass potential clients in Sarawak,” he said.
Looking ahead, Wan Razly said Affin Bank is working towards growing its environmental, social and governance (ESG) commitments.
“Our ESG financing now exceeds 5% of our total portfolio and we are on track to achieving 10% by 2025,” he said.
