Sarawak Petchem Sdn Bhd has announced plans to develop a green methanol plant in Tanjung Kidurong, Bintulu. The project was initiated during a ceremony led by Sarawak Premier Abang Johari Tun Openg. The plant will use renewable energy-powered water electrolysis and captured carbon dioxide to produce green methanol.
According to Sarawak Petchem, green methanol can be used as a sustainable marine fuel. It reduces carbon dioxide emissions and supports efforts to address climate change. The plant aims to help Sarawak transition to greener energy and contribute to the global energy shift.
The Sarawak Methanol Complex in Tanjung Kidurong, also developed by Sarawak Petchem, recently exported 20,000 tonnes of methanol to China. The plant, built by South Korea’s Samsung Engineering, has an annual production capacity of 1.75 million tonnes. This facility, costing RM7 billion, is expected to boost the downstream oil and gas sector in Bintulu.
Sarawak is also partnering with Japanese investors to produce ammonia and hydrogen. A memorandum of understanding is scheduled for signing in May. The planned project will use renewable energy to generate hydrogen through processes such as methanol-to-hydrogen conversion and the cyclohexane process for producing liquid hydrogen. Hydrogen mixed with carbon will also create synthetic gas, providing additional energy options.
Japan’s Prime Minister Shigeru Ishiba has expressed interest in collaborating with Sarawak on ammonia production and hydrogen energy. The partnership aims to export hydrogen and ammonia to Japan and other countries.
Sarawak is positioning itself as a hub for hydrogen energy in Asia. A recent agreement between Petros, Petronas CCS Ventures, and a Japanese consortium enables feasibility studies on carbon dioxide storage at the depleted M3 oilfield off Sarawak. The study will assess storage sites, pipelines, and terminals for carbon capture and storage (CCS).
Other renewable energy initiatives in Sarawak include the Baleh Hydroelectric Project, expected to generate 1,285 MW of power, and ongoing research into bioenergy using palm oil waste. These projects reflect Sarawak’s focus on renewable energy and its role in regional energy transformation.
