KUALA LUMPUR: Boustead Holdings Bhd, together with Next Generation Oil Sdn Bhd, is developing a new ecosystem with renewable algae biofuel technology.
Boustead group managing director Datuk Seri Mohammed Shazalli Ramly said they would develop algae plantation and produce carbon neutral crude algae oil that would result in a reduction of greenhouse gas emitted by traditional fossil fuels.
"Boustead and Next Gen share the same objectives in placing priority in the fight against climate change and global warming while also creating new employment opportunities through the Algae Commercial Ecosystem (ACE) that will help boost Malaysia's economy," Shazalli said at the signing of the Memorandum of Understanding on the prospect here today.
Shazalli said as part of Boustead's new strategy, the renewable energy sphere offered a sustainable revenue stream over the medium and long term for the group.
"This algae biofuel initiative supported by (subsidiary) Boustead Plantations Bhd's ample land bank to build the algae plantations facilities, fits seamlessly into our plan to create an alternative or complementary activity for the subsidiary.
"Apart from several international oil majors from whom the Next Gen has secured offtake agreements for crude algae oil, we also have subsidiary Boustead Petroleum Marketing Sdn Bhd which operates about 400 BHPetrol stations nationwide," he said.
Next Gen has developed the patented A-MAP technology, which is a fundamentally different microalgae cultivation and harvesting process that delivers higher yields on an industrial scale and at a commercially viable production cost.
Bousted owns a large plantation land bank that is required for the development of large scale algae plantations to meet the increasing global demands for biofuels.
Next Gen executive chairman Datuk Indera Mohamed Moiz J M Ali Moiz claimed that said what the A-MAP technology, the expected biofuel market of 300 million tonness in 2030 can be cultivated on less than 67,582 hectares of land in Malaysia.
"We hope that our journey with Boustead will be the catalyst towards realising Malaysia's ambitions of becoming a global leader for the production of crude algae-oil, the vegetable oil of choice for biofuel production," he said.
Moiz said the MoU would initially see Next Gen and Boustead developing the world's first 404.69 hectares algae plantation for the cultivation of algae, harvesting of algae biomass and the subsequent extraction of 1.8 million tonnes of crude algae oil annually.
He said the project would see the company employing about 2,000 Malaysians.
"It is our hope that resulting from upcoming discussions with the government and government-linked companies (GLCs), Malaysia will see the development of not just 404.69 hectares but possibly even 404,685.64 hectares of algae plantations," he said.
Next Gen has targeted to produce about 90,000 tonnes (558,000 barrels) of crude algae oil per day by 2025.
"Today we are already committed to supply within the next 18 months, about 4,300 tonnes per day or 1.4 million tonnes of crude algae oil per year with a sales value of US$750 million, and expect within the next few months to add another million tonnes per year in orders," Moiz said.