KUCHING (Jan 26): Petronas subsidiary Petronas Research Sdn Bhd (PRSB) and SEDC Energy Sdn Bhd, a subsidiary of Sarawak Economic Development Corporation (SEDC), have signed an agreement to develop technology for microalgae oil production.

Under the agreement, PRSB and SEDC Energy will jointly develop algae production technology which includes cultivation, harvesting and extraction of crude algae oil that will later be refined to produce sustainable aviation fuel, a statement from Petronas said on Thursday (Jan 26).

It said both parties will also deep dive into the commercial production requirements for crude algae oil, including developing algae strains with high oil content at a competitive production cost.

The signatories to the agreement, signed in Kuching on Jan 20, were PRSB chief executive officer Norhayati Hashim and SEDC Energy CEO Robert Hardin.

SEDC chairman Tan Sri Abdul Aziz Husain, who was also present during the event, said aside from the development of Sarawak’s hydrogen economy, SEDC also acknowledged the significance of alternative low carbon initiatives as the world transitions from conventional hydrocarbon fuels.

“It has been Sarawak’s interest to explore as many solutions as possible to mitigate carbon emissions and the collaboration with Petronas in the development of next generation renewable oil can potentially be a game-changer,” he said in the same statement.

Meanwhile, Petronas project delivery and technology senior vice president Datuk Bacho Pilong said crude algae oil has the potential to support Petronas’ net zero carbon emissions aspiration by 2050.

“We welcome collaborations with like-minded partners like SEDC who share our vision. We also look forward to playing our role in realising the state’s sustainability goals,” he added.