Sarawak sets sights on green methanol
20 Jan 2025
After successfully producing and exporting methanol, Sarawak Petchem Sdn Bhd is now setting sights on another new product – green methanol.
Sarawak Premier Tan Sri Abang Johari Tun Openg set the wheels in motion when he performed the ground-breaking ceremony for the green methanol plant project at Tanjung Kidurong, Bintulu last week.
State-owned Sarawak Petchem chairman Tan Sri Abdul Aziz Husain said green methanol could be used as a sustainable marine fuel for the shipping industry, contributing to a significant reduction in carbon dioxide emissions, which is crucial in addressing climate change.
“This green-methanol project is an important step in our journey towards sustainable energy solutions. With this initiative, we are not only addressing the energy needs of today but also moving towards a more sustainable and climate-resilient future,” he added.
Abdul Aziz said the project would employ water electrolysis technology powered by renewable energy, along with captured carbon dioxide as feedstock in the synthesis of methanol.
Lauding Sarawak Petchem for embarking on the green methanol plant project, Abang Johari said this would serve as a global model of Sarawak’s active participation in shaping the transition to green energy.
“I just came back from Japan and Japanese firms need green energy sources to power ships in an effort to mitigate carbon emission, and they are opting to use methanol or ammonia, particularly green ammonia.
“We know that green ammonia is combined with carbon. By mixing carbon with hydrogen produced using renewable energy, like solar and hydro, we can produce green methanol,” he added.
At the event, the premier also witnessed the official departure of 20,000 tonnes of methanol from Sarawak Petchem in two vessels to China from the Sarawak Methanol Complex in Tanjung Kidurong.
Sarawak Petchem is Malaysia’s second-largest methanol producer after Petronas Chemicals Group Bhd.
According to earlier media reports, some Rm7bil had been invested in the Sarawak Methanol Complex project.
The methanol plant, which was built by South Korea’s Samsung Engineering Co Ltd, has an annual production capacity of 1.75 million tonnes.
The plant is expected to become a catalyst for future growth of the downstream oil and gas sector in Bintulu.
Meanwhile, Sarawak is expected to partner Japanese investors in a joint venture to produce ammonia and hydrogen.
A memorandum of understanding on the partnership is due to be signed in May.
Abang Johari said the planned project will produce hydrogen using the methanol-to-hydrogen process and the cyclohexane process to generate liquid hydrogen for energy.
“Additionally, hydrogen,when mixed with carbon, will produce synthetic gas, which can also serve as a new energy source.
“Japanese Prime Minister Shigeru Ishiba has asked Sarawak to collaborate with Japan to produce ammonia, and we will further use feedstock hydrogen,” he said during a townhall session here last week.
The event marked Abang Johari’s eighth anniversary as Sarawak premier.
Prime Minister Anwar Ibrahim and Abang Johari had held talks with Shiba on various issues, including transforming Sarawak into a regional energy hub, during the latter’s official visit to Malaysia recently.
And according to Deputy Primer Minister and Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof, during the Anwar-shibaabang Johari meeting, they had discussed and jointly committed to Sarawak becoming a centre for the development of hydrogen, which will be exported not only to Japan but also other regions as well.
Japan has pledged to invest in Sarawak’s hydrogen-energy sector.
Fadillah said Sarawak’s advancement in hydrogen research has attracted investment interest from countries beyond Japan and South Korea, adding that this would help to position Sarawak as a potential primary hub for the hydrogen economy in Asia.
Anwar had expressed hope that clean hydrogen energy and decarbonisation project between Sarawak Economic Development Corp, Petroleum Sarawak Bhd (Petros) and a Japanese consortium could be facilitated by May this year.
The consortium comprises Japan Petroleum Exploration Co Ltd, GC Holdings Corp and Kawasaki Kisen Ltd.
On Feb 26, 2024, Petros, Petronas CCS Ventures Sdn Bhd and the Japanese consortium signed a Storage Site Agreement for the depleted M3 oilfield, off Sarawak.
The agreement not only enables the feasibility studies of the carbon dioxide storage sites, starting with the depleted M3 field, but also the planning of carbon dioxide storage sites, including onshore terminals and transportation pipelines as well as assessment of its technical and commercial feasibility.
Source: The Star
