From oil to solar: China-Brunei cooperation powers a sustainable industrial future

China and Brunei have strengthened energy cooperation, with enterprises from both countries collaborating on oil and gas development and sustainable energy projects. Landmark projects have emerged from this partnership, showcasing practical results.

On February 12, Brunei commissioned its largest solar energy initiative at Hengyi Industries Sdn Bhd – the petrochemical joint venture between Brunei and China – on Pulau Muara Besar (Great Muara Island).

The Sustainable Integration of Natural and Renewable Energy (SINAR) project represents a major step in integrating renewable energy into Hengyi's petrochemical refinery operations and supporting Brunei's national renewable energy goals. 

Following the completion of stage one, SINAR is expected to generate up to 84,000 megawatt-hours (MWh) of clean electricity annually, meeting about 7% of the facility's total energy needs. The project is projected to reduce carbon emissions by 137,180 tonnes of CO2 per year, equivalent to planting around 17,000 hectares of forest. It also supports Brunei's Climate Change Office target to increase the share of renewable energy to at least 30% of total installed capacity by 2035.

Brunei's Minister at the Prime Minister's Office and Second Minister of Finance and Economy Haji Mohd Amin Liew Abdullah said that Hengyi Industries' sustainability journey extends beyond SINAR. Supported by the Brunei government and China's Zhejiang Hengyi Group, the company is preparing for a major expansion.

Scheduled for completion by early 2029, the expansion will nearly triple the refinery's production capacity, increasing output from 8 million to 20 million tonnes per year, further strengthening Brunei's downstream industry and bolstering economic resilience.

Chen Lian Cai, CEO of Hengyi Industries Sdn Bhd, highlighted that the SINAR project helps reduce carbon emissions while promoting energy-efficient and environmentally responsible industrial practices.

Renewable energy integration

In August 2025, the first phase of a solar-plus-storage power station developed by Chinese enterprise Lisiner was successfully connected to Brunei's grid.

The first phase combines 23.8 MWh of energy storage with a 47.5 MW photovoltaic array, providing reliable electricity to the industrial zone on Pulau Muara Besar and optimizing the regional energy mix.

The island's humid, hot and high-salinity environment posed challenges for power stability and storage safety. The Chinese company customized high-efficiency containerized energy storage systems with intelligent cooling technology, ensuring consistent performance in tropical conditions.

The storage system can smooth solar power fluctuations, balance peak and off-peak demand, and ensure backup power, maximizing local renewable energy use and cutting production costs. Reduced fossil fuel consumption also lowers carbon emissions, helping Brunei shift toward a cleaner, more sustainable energy mix.

Such projects has demonstrated how China-Brunei cooperation combines traditional energy development with sustainable solutions, while the collaboration continues to expand into new areas.

"China and Brunei are also strengthening collaboration in emerging sectors such as digital economy, green development, artificial intelligence and smart cities, creating new growth points and deepening bilateral ties," said former Chinese Ambassador to Brunei Xiao Jianguo.

(Cover: Solar panels. /VCG)