Malaysia, South Korea to develop biogas sector

The state-owned Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation) has collaborated with South Korea’s renewable energy firm Polaris Bio Co. Ltd. to develop palm oil mill effluent (POME)-based biogas upgrading facilities in Malaysia as part of renewable energy investments.

Bioenergy Corporation held that an initial RM30 million will be invested in the first facility as part of the RM 700 million total planned investments. This pilot project will validate the technical and financial feasibility of biogas upgrading.

This will also pave the way for the nationwide rollout of more than 20 biogas facilities, which are expected to cut up to 384,000 tonnes of CO₂ equivalent each year.

The partnership will accelerate the commercialisation of biotechnology converting palm oil mill effluent (POME) into Bio-Compressed Natural Gas (Bio-CNG), a biogas fuel, while also creating internationally tradable carbon credits – known as Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2 of the Paris Agreement.

Bioeconomy Corporation CEO Mohd Khairul Fidzal Abdul Razak said that biogas development from oil palm biomass and waste in Malaysia has long been recognised as a strategic opportunity.

“Over the past two years, Bioeconomy Corporation has witnessed a series of bioenergy partnerships from its BioNexus Status and Bio-based Accelerator (BBA) companies, signaling a surge of activity in the sector and renewed investor confidence. This is reflected in our partnership with Polaris Bio, which will advance the government’s push to position bioenergy at the heart of Malaysia’s energy transition and power the country’s circular bioeconomy,” he added.

Polaris Bio CEO Junghwan Kim added that the collaboration with Bioeconomy Corporation opens new opportunities for scaling bioenergy solutions in Malaysia, while setting a benchmark for cross-border climate partnerships. “This collaboration not only reinforces Korea–Malaysia cooperation in renewable energy and carbon markets, but also stands as the first bilateral endeavour under Article 6.2, enhancing carbon market development in both nations,” he stated.

Malaysia targets to have 40% renewables in the primary energy mix by 2035 and support the goals of the National Biotechnology Policy 2.0.