KUALA LUMPUR, Oct 6 (Bernama) -- Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation) and South Korea-based Polaris Bio Co Ltd have sealed RM700 million investments to develop palm oil mill effluent (POME)-based biogas upgrading facilities in Malaysia.
An initial RM30 million will be invested in the first facility as part of the RM700 million total planned investments.
“This pilot project will validate the technical and financial feasibility of biogas upgrading and pave the way for the nationwide rollout of more than 20 facilities, which are expected to cut up to 384,000 tonnes of carbon dioxide (CO₂) equivalent each year,” the companies said in a joint statement.
Bioeconomy Corporation chief executive officer (CEO) Mohd Khairul Fidzal Abdul Razak and Polaris Bio CEO Junghwan Kim exchanged a memorandum of understanding (MoU) during the National Innovation and Creative Economy Expo 2025 today.
The exchange was witnessed by Deputy Prime Minister and Minister of Energy Transition and Water Transformation, Datuk Seri Haji Fadillah Yusof.
Furthermore, the partnership will accelerate the commercialisation of biotechnology by converting POME into bio-compressed natural gas (Bio-CNG), a sustainable fuel, while also creating internationally tradable carbon credits – known as Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2 of the Paris Agreement.
Mohd Khairul Fidzal said that while early projects faced inconsistent yields, high maintenance costs, and limited downstream integration, recent technological advances have improved efficiency and reliability.
These advances have enabled biogas to be upgraded into Bio-CNG, biomethane, and green chemicals, making it a viable pathway for decarbonisation and integration into Malaysia’s renewable energy and bio-based industrial ecosystem.
“Over the past two years, Bioeconomy Corporation has witnessed a series of bioenergy partnerships from its BioNexus Status and Bio-based Accelerator companies, signalling 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 said.
Meanwhile, Kim said the collaboration opens new opportunities for scaling bioenergy solutions in Malaysia, while setting a benchmark for cross-border climate partnerships.
“Since 2020, Polaris Bio has been actively engaged in Malaysia’s pioneering POME-to-Bio-CNG initiatives.
“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 added.
-- BERNAMA
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