Kuala Lumpur: Techna-X Berhad (TECHNA-X) announced yesterday the signing of a landmark tripartite agreement for a renewable energy technology project to develop an 85-acre microalgae farm.

This ground-breaking project focuses on microalgae farming and algae biofuel production in a partnership between Techna-X Aerobeidou Sdn. Bhd. (TASB), MYKO Global Sdn. Bhd. (MYKO), and RTA E&C Sdn. Bhd. (RTA). TASB, a wholly-owned subsidiary of TECHNA-X, is the investor and technology partner for this project and the aim is to develop an 85-acre microalgae farm with an investment of USD$120 million, expecting production to last for a minimum of 30 years.

In this tripartite agreement, MYKO, the technology provider, will manage the facility and ensure the production of a minimum of 36,000 metric tonnes of crude algae oil for biofuel per year. This volume is projected to generate a net annual revenue of approximately USD$40 million.

This project aims to farm microalgae and extract crude algae oil from it, leveraging on MYKO’s technology and patents, and RTA’s engineering, procurement, construction and commissioning expertise and TASB will act as the investor and Internet of Things technology partner.

“In line with our strategic commitment to becoming part of the solution for climate change, TECHNA-X recognises the critical role renewable energy and carbon capture technology can play. Our involvement in this project underscores our determination to contribute to the global climate change agenda and help achieve the goals of carbon neutrality,” said YAM Tunku Naquiyuddin ibni Tuanku Ja’afar, Executive Chairman of TECHNA-X.

The renewable energy sector is a rapidly growing field, and microalgae biofuel represents a significant area of opportunity. The recent enforcement of The Renewable Fuel Standard (RFS) program in the US, along with similar programs in Germany, the UK and Brazil, has placed a spotlight on the importance of low-GHG renewable fuels in addressing climate change. Furthermore, recent commitments by the world’s airlines to achieve net-zero carbon emissions by 2050 have escalated the demand for sustainable aviation fuels (SAF).

Microalgae is a potent solution in this respect, being a set of organisms that are the oldest life forms on Earth and capable of converting sunlight, CO2, and micro-doses of nutrients into oil more efficiently than other crops. Additionally, algae can sequester up to 3 times their body weight of CO2, contributing significantly to carbon capture efforts. One ton of algae oil produced can sequester 2.2 tonnes of CO2.

This will create and develop an innovative method for algae cultivation – Algae- Modular Automated Plantation (A-MAP) – which utilises a unique honeycomb pool design to enable high-density and automated harvesting of non-GMO microalgae strains. This system delivers exponentially higher yields on an industrial scale at commercially viable production costs, making it an environmentally friendly and economically sound investment.

This agreement allows TECHNA-X to partner with the world’s first and currently the only algae cultivation company to be certified by the International Sustainability Carbon Certification (ISCC), signifying our commitment to reducing GHG emissions, promoting sustainable land use, traceability, the protection of natural biospheres, and ensuring social sustainability.

RTA, the engineering, procurement, construction, and commissioning (EPCC) contractor, will oversee the construction and operations of the farm.

“This investment proposition is a significant stride for TECHNA-X into a green sustainable fuel source. Microalgae cultivation and biofuel extraction of fuel offers great potential for socio-economic growth. This is due to a range of reasons, including regulatory requirements for biofuel usage in several countries, the role of microalgae in carbon sequestration as well as the innovative cultivation techniques offered by MYKO’s patented A-MAP process.

“Not only is this a major ESG initiative but there are incredible synergies through leveraging on TECHNA-X’s expertise in Agriculture IOT to deliver the first IR4.0 enabled microalgae farm. By adapting core components within our digital and AI agri platform, the various technologies can help to enhance operational efficiency, reduce manpower and increase the yields” said Vince Ng Chief Technology Officer of TECHNA-X.

After the successful deployment of the first 85 acre module, TASB will have the first right of refusal to expand the development agreement with MYKO at similar terms.