The Algae Revolution: Sarawak’s Eco-Innovative Climate Solution

By Antonia Chiam

“If this carbon capture and integrated microalgae production facility can prove to be successful, Sarawak will no doubt be the global reference for corporates and multinationals alike who are confronting their own green transformation.” Abang Johari (May 10, 2023)

SARAWAK is positioning itself at the vanguard of sustainable energy innovation under the leadership of Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg. Among the boldest of its green endeavours is the State’s algae cultivation initiative, an ambitious programme to transform microalgae into an abundant source of renewable energy and green products, especially Sustainable Aviation Fuel (SAF).

At the heart of this transformation is Sarawak’s unique geography and climate. Its year-round tropical warmth and abundant access to seawater provide ideal conditions for large-scale algae cultivation. These natural advantages, coupled with visionary leadership and international partnerships, are fuelling Sarawak’s journey to become a global hub for algae-based biofuel production.

From Algae to Aviation Fuel

The centrepiece of this initiative is the expansive algae farm in Bintulu, envisioned to scale up to 10,000 acres by 2030. Scientific projections suggest that just 1,000 acres of algae can yield around 10,000 barrels of crude algae oil daily. This output could rise to 100,000 barrels daily at full capacity, positioning Sarawak as a self-reliant producer of renewable oil, with the potential to eliminate dependence on traditional offshore or onshore oil drilling.

Abang Johari revealed as early as June 7, 2022, SEDC Energy Sdn Bhd has been working alongside Petroliam Nasional Berhad (PETRONAS) to establish a research laboratory to study algae growth and oil extraction methods. He explained that biofuel could be extracted using carbon dioxide as a solvent, a process that not only creates clean energy but also absorbs harmful greenhouse gases (GHG) in the process.

This vision crystallised further with the launch of the world’s largest microalgae biomass production facility—Chitose Carbon Capture Central Sarawak (C4 Sarawak), on May 10, 2023, at Sejingkat, Kuching. The five-hectare facility, led by Japan’s Chitose Group and Sarawak Energy, is funded by Japan’s New Energy and Industrial Technology Development Organisation (NEDO), and is a landmark example of industrial-scale algae utilisation. It taps flue gas from the nearby Sejingkat coal power plant to grow algae, absorbing an estimated 700 tonnes of CO₂ annually and producing approximately 350 tonnes of biomass.

On May 22, 2023, Sarawak achieved a significant milestone in sustainable aviation by fuelling an aircraft with algae-based SAF produced locally. The aircraft, an airBaltic Airbus A220-300, was the first to be refuelled with this Sarawak-made SAF during a transit at Kuching International Airport. Sarawak Premier Abang Johari was aboard this historic flight to attend the Langkawi International Maritime and Aerospace Exhibition (LIMA 2023).

The SAF utilised in this flight was derived from micro-algae cultivated at a joint PETRONAS–SEDC Energy algae farm in Kuching, Sarawak. While the SAF used in this flight comprised only a small percentage of the total fuel, this initiative marks a significant step toward integrating sustainable fuels into aviation and demonstrates Sarawak’s potential in contributing to global efforts in reducing carbon emissions in the aviation industry.

Green Economy, Global Partnerships

Algae cultivation is fully aligned with Sarawak’s Green Economy agenda under the Post Covid-19 Development Strategy (PCDS) 2030. The initiative is an essential pillar of the State’s plan to achieve net-zero emissions and attract clean energy investments. On March 6, 2023, Chitose Laboratory Corp confirmed the five-hectare production facility in Sejingkat had received over USD18.3 million from the Japanese government, affirming international confidence in Sarawak’s strategy.

In May 2024, this momentum continued with the signing of a Memorandum of Understanding (MoU) between InvestSarawak and Japan’s Marubeni Corporation, aimed at developing a commercial-scale SAF value chain for domestic and export markets by 2030. Abang Johari’s broader vision also involves integrating rural communities into this green economy. He suggested that villagers could cultivate algae and produce biofuel locally, transforming smallholders into energy producers and creating new avenues for rural prosperity.

“If our ‘orang kampung’ (villagers) can produce biofuel, they can be as rich as those in Saudi Arabia,” he said. In May 2023, Abang Johari was ready to state that Sarawak may no longer need to search for fossil fuels, thanks to the feasibility and scalability of algae cultivation. With crude algae oil production costs below USD50 per barrel and the green premium fetching up to USD110 at biorefineries, the economic case is clear.

Beyond Energy: Health, Wellness and Innovation

While energy remains the focal point, Sarawak’s algae revolution extends into health, beauty, agriculture, and biotechnology. Microalgae such as spirulina is already recognised as superfoods, rich in nutrients and antioxidants. Researchers are further exploring algae’s potential in pharmaceutical and therapeutic applications, ranging from immune boosters to antibacterial and anti-inflammatory agents. But beyond spirulina, we are also looking into other algae species for their potential medical applications.

“For instance, some algae have been found to have antibacterial and antiviral properties, which can help in the fight against infectious diseases,” said Abang Johari when delivering his winding-up speech at Sarawak Legislature in May 2023.

The commercial landscape is expanding accordingly. Abang Johari highlighted that algae biomass could be used for fish food, fertiliser, pulp and paper, and even bio-coal. This opens a broad array of downstream industries that diversify Sarawak’s economy while supporting its sustainability goals. With plans of scaling the existing Sejingkat facility from five hectares to 100 hectares, and a roadmap to reach 2,000 hectares by 2030, the expansion is expected to create 5,000 new jobs and sequester 200,000 tonnes of carbon annually, further embedding algae cultivation as a central component of Sarawak’s green industrial base.

A Sustainable Future from the Waters

Algae, or lumut, as it is locally known, is no longer just an aquatic plant; it is Sarawak’s green gold. It is a carbon absorber, an energy source, and a cornerstone of a new industrial economy rooted in sustainability. From photosynthesis-powered “liquid trees” to carbon-neutral jet fuel, Sarawak’s algae initiative is laying down a model for the world.

As Abang Johari succinctly put it, “The cultivation and extraction of algae will be our new upstream business, and the crude algae oil refining into SAF will be the new downstream business.”

One area that is set to benefit from this green transition is Gedong, which Abang Johari has envisioned as a future biotechnology hub through a strategic collaboration with a Japanese partner focused on algae cultivation. As announced in April 2025, the project is set to add a rural innovation dimension to Sarawak’s broader low-carbon economy ambitions, with Gedong becoming a testbed for bio-industrial integration at the community level.

Further downstream, Bintulu, already home to Sarawak’s flagship algae farm, is poised to play a central role in scaling this industry. Identified as an ‘Emerging Industrial Cluster’ in the State’s development blueprint, Bintulu is being positioned to spearhead Sarawak’s transformation into a global hub for renewable energy and bio-based manufacturing.

Lighting the Way, Together

This vision is expected to be presented on the world stage when Abang Johari addresses the World Economic Forum in Davos at the end of 2025, underlining Sarawak’s commitment to climate leadership and sustainable industrial growth. With the right investment, research, and international partnerships, algae could well be the green tide that carries Sarawak into a sustainable future, one barrel of green oil at a time.

The content featured here is an excerpt from the book “Rise of Sarawak: Abang Johari’s Era of Transformation”, published by Sage Salute Sdn Bhd. 

Advertisement