Sabah is taking a significant step toward a green economy with an ambitious initiative to cultivate microalgae for biofuel, bioplastics, and other sustainable products. The project, driven by Sabah Agro-Industrial Precinct (SAIP) Sdn Bhd, which focuses on developing integrated agro-industrial parks, and CCE Power Holdings Sdn Bhd, a renewable energy and biomass power developer, aims to attract investment, foster new industries, and generate high-skilled employment in the state.
The memorandum of understanding (MOU) signed between the two companies marks the launch of a collaborative effort to produce microalgae biomass as feedstock for what is projected to become the largest biomass power plant in the world. The initiative is expected to support Sabah’s sustainability agenda while contributing to the national green energy landscape. Distinct from neighboring Sarawak, which relies on a photosynthesis-based algae cultivation system, Sabah will employ heterotrophic technology, a closed-tank system that does not require sunlight. This method enables a shorter production cycle of just five to seven days, achieving yields of nearly 60%. The project will initially cover 100 hectares, with plans to expand to 1,000 hectares in collaboration with international partners, including Japanese stakeholders.
The initiative underscores Sabah’s ambition to establish itself as a premier hub for the algae industry in Malaysia. By combining innovation, sustainable practices, and high-tech solutions, the project promises both economic and environmental benefits. According to estimates, the investment in this private-sector partnership could reach approximately MYR 200 million (USD 45 million) in the initial phase. The collaboration between SAIP and CCE Power highlights the potential of private-public cooperation to accelerate Sabah’s green transition, drive commercialization of algae-based products, and support the state’s long-term vision for sustainable industrial growth. This innovative approach positions Sabah to leapfrog its development by leveraging technology to create high-value manufacturing activities, facilitate technology transfer, and provide skilled jobs for the state’s workforce.
(Sources: Borneo Post; New Straits Times)
