Boustead Holdings Bhd and Next Generation Oil Sdn Bhd (Next Gen) is working together to create a new economic environment centred on algae biofuels to fight against climate change and global warming.
Boustead Group Managing Director, Mohammed Shazalli Ramly said this Memorandum of Understanding (MoU) will help minimise greenhouse gas emissions produced by conventional fossil fuels and both companies will grow the algae plantation and manufacture carbon-neutral crude algae oil.
“This is as part of the group’s new strategy; the renewable energy sphere offers a sustainable revenue stream over the medium to 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 Next Gen has secured crude algae oil offtake agreements, the company also has a subsidiary, Boustead Petroleum Marketing Sdn Bhd, which operates around 400 BHPetrol stations across the country,” Shazally said.
Shazalli said the partnership will also create new employment opportunities, especially for army veterans.
“This can help the serviceman and ex-serviceman who is our main shareholder through their contributions to the Armed Forces Fund Board,” he said.
Next Generation Executive Chairman Mohamed Moiz said he believe the joint venture see Malaysia introduce a new sustainable carbon-neutral commodity to the world.
He added that this can position Malaysia as the leading centre for algae oil production and establish Malaysia to be amongst world leaders in providing real and practical solution in addressing carbon emission.
“This also can create a new economic activity sector where high-value jobs and a practical vendor development programme that is realisable.
“With this crude algae oil, Malaysia will be able to contribute to the effort to fuel the world without compromising the need to feed the world,” Moiz 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.
Complimentarily, Boustead owns a large plantation landbank that is required for the development of large-scale algae plantations to meet the increasing global demand for biofuels.