Methanol plant set for commercial operations in July

COMMERCIAL operations by the state-owned methanol plant in Tanjung Kidurong, Bintulu, will commence on July 22 this year, said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said the plant with a production capacity of 1.75 million tonnes per annum and operated by Sarawak Petchem Sdn Bhd will begin its operations in conjunction with this year’s Sarawak Day celebration.

“As part of their commitment to lowering carbon emissions, Sarawak Petchem has also inked a Memorandum of Understanding with Petronas Chemicals Group to undertake a feasibility study to develop the first low-carbon ammonia and urea production plant in this region,” he said.

Abang Johari who is Minister of Finance and New Economy, Minister of Natural Resources and Urban Development and Minister of Energy and Environmental Sustainability said this during his Ministerial winding-up speech at the Sarawak State Legislative Assembly (DUN) sitting on today (May 15).

Earlier, he said he is firm about Sarawak pushing towards greater economic diversification to ensure the energy security and prosperity of Sarawak.

“Our conviction in the new economy will drive the development of new growth sectors aligning with global trends and leading the way for Malaysia.

“This compels Sarawak to accelerate its transition to green energy, including electrification and hydrogen. Several catalytic projects have been initiated.

“These catalytic projects are crucial for the development of more high-value downstream industries, such as clean fuels and chemicals namely, green ammonia and green methanol, which can add value to our economy,” he added.

He also said that clean hydrogen is key to the production of clean ammonia and methanol to be used in clean fuels.

“Methanol is garnering increasing attention as a viable option for marine fuel due to its potential to reduce greenhouse gas emissions and address sustainability concerns in the shipping industry.

“Green methanol can be produced from green hydrogen via the methanol synthesis process, using green carbon from biomass,” he said.

He added that there are various industrial applications of methanol, including as a feedstock for the production of chemicals, plastics, and as a substitute for transportation fuels.

“Recognising this, organisations such as the International Maritime Organisation (IMO) are actively engaged in developing guidelines for the design and operation of ships utilising green methanol as marine fuel of the future,” said Abang Johari.