Abang Johari said the collaboration to jointly study the potential development of a world-scale low-carbon ammonia and urea plant is very much welcomed.
KUALA LUMPUR (Feb 21): Petronas Chemicals Group Bhd (PCG) has signed a memorandum of understanding (MoU) with Sarawak Petchem Sdn Bhd for a joint feasibility study to develop a low-carbon ammonia and urea plant in Bintulu, Sarawak.
In a joint statement today, the two companies said the terms of the MoU include a joint comprehensive study on the technical and commercial aspects, among other considerations, in meeting the rising demands for cleaner energy solutions by tapping into the renewable energy potential within the region.
Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said the collaboration to jointly study the potential development of a world-scale low-carbon ammonia and urea plant is very much welcomed.
“This plant will have a future capability to produce ammonia with a very low carbon footprint; it is indeed a strategic initiative to capitalise on opportunities within the global energy transition market,” he said.
Sarawak Petchem chairman Tan Sri Abdul Aziz Husain said this collaboration allows the company to capitalise on synergies, optimise costs, and share the risks, thereby maximising value for Sarawak and Malaysia.
“This further exemplifies our prudent business practices and collaborative mindset. This joint development initiative serves as a catalyst for economic development in Sarawak, driving job creation and fostering sustainable growth in line with the objectives outlined in the Sarawak Post Covid-19 Development Strategy 2030 (PCDS 2030),” he said.
Meanwhile, PCG managing director and chief executive officer Mazuin Ismail said this is potentially the company’s first low-carbon project and underlines its commitment to drive sustainable transformation within the value chain.
“This collaboration with Sarawak Petchem not only aligns with PCG’s and the nation’s sustainability objectives but also facilitates our further expansion into the Southeast Asian urea market.
“Additionally, it presents an opportunity to leverage Sarawak’s renewable energy resources while complementing our efforts in developing carbon capture and storage (CCS) facilities,” he said.
Low-carbon ammonia is predominantly utilised in the hydrogen and power sectors for co-firing, bunkering and future sustainable ammonia applications, while urea serves primarily as a fertiliser, a raw material for resins in plywood and adhesives, as well as diesel exhaust fluid for automotive applications. – Bernama
