BOUSTEAD PARTNERS NEXT GEN TO CO-CREATE NEW ECONOMIC ECOSYSTEM WITH RENEWABLE ALGAE BIOFUEL TECHNOLOGY

KUALA LUMPUR, March 19 -- Boustead Holdings Bhd has partnered Next Generation Oil Sdn Bhd (Next Gen) to co-create a new economic ecosystem with renewable algae biofuel technology, which will result in a reduction of greenhouse gases emitted by traditional fossil fuels.

Boustead group managing director Datuk Seri Mohammed Shazalli Ramly said that for a start, both companies will be developing the world’s first 404.69 hectares of 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 Next Gen has developed the patented A-MAP technology which is a fundamentally different micro algae cultivation and harvesting process that delivers exponentially higher yields on an industrial scale and at a commercially viable production cost. 

"Complimentarily, Boustead owns a large plantation land bank required for the development of large-scale algae plantations to meet the increasing global demand for biofuels. 

“As part of our new strategy, the renewable energy sphere offers a sustainable revenue stream over the medium and long term for the group," he said at the memorandum of understanding signing ceremony between the two companies here today. 

Mohammed Shazalli said this algae biofuel initiative supported by Boustead Plantations Bhd’s (BPB) ample land bank to build the algae plantation facilities, fits seamlessly into Boustead's plan to create an alternative or complementary activity for BPB. 

"Apart from several international oil majors from whom Next Gen has secured offtake agreements for crude algae oil, we also have a subsidiary, Boustead Petroleum Marketing Sdn Bhd, which operates about 400 BHPetrol stations nationwide that could potentially be the future local offtaker of the algae feedstock. 

“This joint effort will help to create new employment opportunities, especially for army veterans, which is one of Boustead’s main business agendas that is to help the servicemen and ex-servicemen who are our main shareholders through their contributions to the Armed Forces Fund Board," he said. 

Mohammed Shazalli said this venture would also provide a real platform for the creation of a new vendor development programme, supporting a whole new business ecosystem that will greatly benefit Malaysians and the country. 

Next Gen executive chairman Datuk Indera Mohamed Moiz J M Ali Moiz said crude algae oil is a carbon neutral, renewable, non-fossil oil that can be refined into bio diesel, bio gasoline and bio aviation fuel, for use in the transportation and energy sectors. 

"At the moment we (Next Gen) have a pilot project of algae plantation in Pahang, with the development cost of between US$750 million and US$900 million, which we are targeting 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," he said, adding that the company will add another million tonnes per year in orders within the next few months. 

Indera Mohamed Moiz said that with the support and energy of the Boustead management team, the work on the first algae plantation will be able to start by the end of the third quarter of 2021 or the beginning of the fourth quarter this year.

-- BERNAMA