KUCHING: Sarawak Petchem Sdn Bhd is exploring partnerships to produce and export blue ammonia.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the collaboration will include carbon capture for the blue ammonia.
He said the new concept of blue ammonia is currently being considered as fuel for power generation, replacing coal, adding that potential customers have been requesting for the supply of blue ammonia.
(Blue ammonia is made from nitrogen and “blue” hydrogen derived from natural gas feedstocks, with the carbon dioxide by-product from hydrogen production captured and stored.)
“I have previously spoken about the second methanol project, and after due consideration and looking at the market demand, I have been updated that Sarawak Petchem has narrowed down its product option to blue ammonia and/or urea.
“If this project materialises, we will be the first in South East Asia to produce and export blue ammonia,” he said.
He was speaking at the First Gas Readiness Ceremony of the Bintulu Additional Gas Sales Facility 2 (BAGSF-2) here in Tanjung Kidurong, Bintulu today.
With the remaining available gas allocated to Sarawak, Abang Johari believed the volume is sufficient for the state to produce blue ammonia and/or urea.
Following this, he hoped that the agreement for the gas supply to the project will be executed immediately.
He also urged Sarawak Petchem to start with the relevant activities for the plant to be on stream soon.
“I believe this project will get the full support of the financial institutions as this supports sustainability and reduction of carbon emission agenda.
“This is part of Sarawak’s aspiration to further develop and transform the petrochemical industry in Bintulu which is aligned with Sarawak Post-Covid-19 Development Strategy (PCDS) 2030,” he added.
Earlier, Abang Johari expressed his appreciation to all the parties involved – Petronas, Sarawak Petchem and Sarawak Energy Bhd – for the commitment shown in getting the BAGSF-2 ready for first gas, in just over a year.
He said the facility’s ability to deliver the gas, underscores greater things to come, both for the petrochemical and power industries in Sarawak.
“As the petrochemical and power industries are two important ways for Sarawak to achieve PCDS 2030, I am keen to see the growth of these two sectors contributing towards the creation of jobs in Sarawak, keeping with our plan to see the workforce expand by 195,000 jobs while narrowing the developmental gaps between urban and rural Sarawak.
“With an improved access to energy, we can accelerate our digital adoption, allowing for easier business transactions, and optimal use of our assets,” he added.
