Bintulu Port Holdings Berhad (BPHB) has set its sights on becoming a central player in Sarawak’s low-carbon transition, signing three separate Memoranda of Understanding (MoUs) to advance liquid hydrogen infrastructure, Bio-LNG feasibility, and bioethanol and sustainable aviation fuel (SAF) production.
The agreements were inked during the Ministry of Energy and Environment Sustainability’s (MEESTY) Public-Industry Engagement Day and the launch of the Sarawak Energy Transition Policy (SET-P).
The first MoU, with Sakura Ferroalloys, targets decarbonization through bioethanol and SAF production. These fuels are critical to Sarawak’s Net Zero 2050 goals and compliance with tightening global frameworks such as the EU’s Carbon Border Adjustment Mechanism (CBAM). While bioethanol and SAF remain premium-priced compared to fossil alternatives, BPHB’s framing of the deal suggests an intent to link industrial off-take with policy-driven demand growth. Given SAF’s projected shortfall—IEA data indicates global supply could meet less than 2% of aviation fuel demand by 2025—the partnership’s viability will hinge on scaling cost-competitive production in a region not yet known for large-scale SAF manufacturing.
The second MoU, signed with Borneo Biogas, addresses Bio-LNG, an emerging fuel with both maritime and industrial applications. The feasibility study will explore not only production but also bunkering infrastructure, including the possibility of powering port support vessels. This reflects a strategic shift: ports, traditionally viewed as fossil fuel-intensive operations, are increasingly adopting low-carbon bunkering solutions to maintain competitiveness in global shipping lanes under tightening International Maritime Organization (IMO) emissions rules. However, Bio-LNG’s commercial deployment in Asia remains limited, and its success in Sarawak will depend on integrating feedstock supply chains with reliable offtake markets.
The third agreement, with China’s Jiangsu Guofu Hydrogen Energy Equipment Co. Ltd (GUOFUHEE), aims to establish a liquid hydrogen facility at Bintulu Port. This move positions the port to serve both domestic hydrogen users—such as industrial clusters and transport fleets—and export markets in Northeast Asia, where Japan and South Korea are investing heavily in hydrogen imports. Technical integration into port operations, including potential hydrogen-powered vessels, is part of the plan. Yet large-scale liquid hydrogen production faces unresolved challenges in storage, boil-off management, and shipping cost competitiveness, meaning that infrastructure readiness will be a decisive factor in Bintulu’s bid to capture early hydrogen trade flows.
By bundling SAF, Bio-LNG, and hydrogen into a coordinated strategy, BPHB is signaling a diversified approach to decarbonization rather than betting on a single technology.
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