PETRONAS, SEDC Energy Collaborate to Spur Adoption of Hydrogen, Renewable Oil in Sarawak

KUALA LUMPUR, 21 July 2022 – PETRONAS and SEDC Energy Sdn Bhd, a subsidiary of Sarawak Economic Development Corporation, have entered into two arrangements to accelerate the development and adoption of hydrogen and renewable oil as alternative fuels for the state.

A Supply Arrangement on Hydrogen Production Technology and a Joint Technology Collaboration Arrangement on Renewable Oil were signed yesterday between both parties during an official visit by Premier of Sarawak, YAB Datuk Patinggi Tan Sri (Dr.) Abang Haji Abdul Rahman Zohari bin Tun Datuk Abang Haji Openg to PETRONAS President & Group CEO, Datuk Tengku Muhammad Taufik. Also present was SEDC Chairman, YBhg. Tan Sri Datuk Amar (Dr.) Haji Abdul Aziz bin Dato Haji Husain.

The supply arrangement was signed between PETRONAS Technology Ventures Sdn Bhd (PTVSB) CEO, Dr. Mahpuzah Abai and SEDC Energy CEO, Robert Hardin, while joint technology collaboration arrangement was signed by Hardin and PETRONAS Chief Technology Office, Dr. Nasir Darman representing PRSB.

PETRONAS Senior Vice President of Project Delivery & Technology, Bacho Pilong and Director of SEDC Energy, Tuan Haji Abdul Hadi bin Datuk Abdul Kadir witnessed the signing.

Datuk Tengku Taufik said, “The partnership with SEDC Energy bears strong testimony to the shared vision of both parties to unlock the possibilities of what renewables can offer in realising Sarawak’s aspiration for a lower-carbon economy. Even as PETRONAS strengthens its core activities, we remain committed to collaborating and supporting the Sarawak State Government as its strategic energy partner, leveraging on our technological capabilities. We believe that such partnership will enable greater access to cleaner energy sources for the economic growth of Sarawak specifically, as well as the nation at large.”

In his speech, the Premier of Sarawak mentioned, “I am very pleased to see this collaboration in cultivating homegrown technologies among two local companies, SEDC Energy and PETRONAS. We have been approached by and we are also working with many global players in the region. It is vital to gain certification and be recognised at the world stage to explore networks and the necessary accreditations with regards to future fuels.”

The Supply Arrangement between PTVSB and SEDC Energy focuses on expanding the application of green hydrogen technologies in Sarawak. The arrangement covers the supply and operation of PETRONAS’ proprietary Proton Exchange Membrane (PEM) Electrolyser for the production of green hydrogen that would be delivered to the Darul Hana and Batu Kawa refuelling stations.

Both parties will work together to develop local expertise in manufacturing PETRONAS electrolyser technology and integrating it into the state’s current plant systems. The parties will also explore opportunities for the design and development of a “Hydrogen City” in Sarawak.

Via the Joint Technology Collaboration Arrangement on Renewable Oil, PRSB and SEDC Energy will explore the development of an Initial Commercial Plant (ICP) for microalgae cultivation and harvesting, as well as extraction of crude algae oil. Subject to commercial attractiveness, the parties may look into establishing a large-scale commercial plant at a later stage.

The collaboration will also deep dive into the key success criteria to commercially produce crude algae oil, particularly on growing and developing algae strains with high growth rate, high oil content, and low production cost.