Ammonia and urea plant catalyst for economic growth

KUCHING: Sarawak’s investment in a low-carbon ammonia and urea factory in Bintulu is a major step to accomplishing the objectives of its Post-Covid-19 Development Strategy (PCDS) 2030.

Universiti Malaysia Sarawak’s (Unimas) economics and business senior lecturer, Dr Nur Zaimah Ubaidillah said this development supports the state’s objectives to increase food security, encourage self-sufficiency, and lessen its carbon footprint in order to aid in the global energy transition.

She said the facility will directly affect the agriculture sector and food production by producing urea for fertiliser and ammonia for the shipping industry.

“With this, Sarawak can improve crop yields, improve soil quality, and ensure a steady supply of fertilisers for extensive paddy planting and other agricultural endeavours by producing urea domestically.

“By stabilising local prices and reducing dependency on imports, this self-sustaining ecosystem will improve food security in the area,” she said when contacted by New Sarawak Tribune on Tuesday.

Looking forward, she stated that the plant development would facilitate trade not only for Sarawak but also for surrounding nations and international markets.

According to her, with its increased capacity to produce low-carbon ammonia, Sarawak is establishing itself as a major player in the energy sector, especially for use in the power industries.

“This may draw in international businesses eager to work together or contribute to green energy projects, thereby broadening Sarawak’s economic base. Furthermore, Sarawak is a desirable location for businesses specialising in clean energy solutions because of its dedication to lowering its carbon footprint and its alignment with worldwide trends toward sustainability.

“In other words, the plant acts as a catalyst for economic growth, fostering an environment that is conducive to international investment and trade in the energy sector, in addition to enhancing Sarawak’s food security and self-sufficiency,” she said.

In light of this, Nur Zaimah said that by constructing this facility, Sarawak is promoting economic growth, generating jobs, and constructing a value chain that retains income in the state.

“This development is a component of a larger plan to increase Sarawak’s economic diversification and resilience to changes in international markets.

“It is anticipated that the project would contribute significantly to the state’s overall economic growth by generating considerable revenue from both local sales and exports,” she said.

It was reported that Sarawak will invest RM6 billion to develop a low-carbon ammonia and urea plant in Bintulu.

According to Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, ammonia is used in the shipping industry, while urea will be used in the fertiliser processes, linking to the food sector and food security.

He added that this initiative aligns with a new approach to food security through large-scale paddy planting.

“We decided to produce our own urea for use in Sarawak and for export. This value chain we are building in Sarawak uses our own resources,” he said.