HYCO1, PETROS, and PJ Energy Services partner to advance CO2 utilization, low-carbon syngas production, and sustainable industrial growth in Sarawak.
HYCO1 has announced the signing of a Joint Collaboration Agreement (JCA) with Petroleum Sarawak Berhad (PETROS) and PJ Energy Services (M) Sdn Bhd, formalizing a strategic partnership aimed at accelerating carbon dioxide utilization and supporting low-carbon industrial development in Sarawak, Malaysia. The collaboration represents a significant milestone in the region’s efforts to transform industrial emissions into economic opportunities while advancing long-term decarbonization goals.
Under the terms of the agreement, the three parties will work together to identify, study, and evaluate commercially viable pathways for converting CO2 emissions into high-value industrial products. Central to this collaboration is the potential application of HYCO1’s proprietary and patented CO2 utilization technology, which integrates captured carbon dioxide with natural gas to generate chemical-grade synthesis gas, or syngas. This syngas can then be used as a critical feedstock for a wide range of downstream industrial processes, including chemicals and fuels manufacturing.
HYCO1’s technology offers a distinct advantage by enabling the production of low-carbon syngas while reducing natural gas consumption by as much as 50 percent compared to conventional production methods delivering the same output volumes. This efficiency not only helps extend the lifespan of natural gas resources but also contributes to lower operating costs and a reduced carbon footprint. As a result, the technology supports the transition toward industrial systems that can achieve low or near-zero emissions without compromising economic competitiveness.
The collaboration is designed to align closely with the Sarawak Gas Roadmap as well as PETROS’ ongoing carbon capture, utilization, and storage (CCUS) initiatives. A key objective will be the development of localized, low-carbon industrial production hubs within Sarawak. These hubs are expected to play a dual role: supporting the state’s decarbonization ambitions while strengthening its appeal as a destination for sustainable industrial investment and cost-competitive manufacturing. PJ Energy Services will contribute its regional operational knowledge, engineering expertise, and energy services capabilities to support the technical evaluation and potential development of identified opportunities.
Commenting on the agreement, Gregory Carr, Chief Executive Officer of HYCO1, said the partnership offers a valuable opportunity to deploy the company’s technology in a region that is actively pursuing a strategic approach to low-carbon growth. He emphasized that working closely with PETROS and PJ Energy Services will allow the partners to assess practical pathways for converting CO2 emissions into affordable industrial feedstock, while also reinforcing Sarawak’s long-term energy security and sustainability objectives.
As part of the JCA, the three organizations will jointly screen and assess multiple potential investment opportunities through detailed technical and commercial studies. These assessments will focus on projects capable of producing low-cost, low-carbon chemicals and fuels within Sarawak, with the goal of delivering strong environmental benefits alongside attractive economic returns.
Datuk Joseph Podtung, Senior Vice President for Growth at PETROS, noted that the collaboration reflects PETROS’ commitment to exploring innovative solutions that advance Sarawak’s low-carbon ambitions. He highlighted that evaluating new CO2 utilization approaches alongside established CCUS efforts is critical for supporting sustainable industrial development across the state.
Jamel Salleh, Managing Director of PJ Energy Services, added that the company is pleased to contribute its engineering and energy services expertise to help develop innovative CO2 utilization projects in Sarawak and potentially beyond.
Overall, the Joint Collaboration Agreement reinforces HYCO1’s broader strategy of partnering with forward-looking organizations to accelerate the deployment of scalable, commercially viable low-carbon technologies across key global industrial markets.
