KUALA LUMPUR (Oct 6): Malaysian Bioeconomy Development Corporation (Bioeconomy Corp) and South Korea’s renewable energy Polaris Bio Co Ltd have joined forces to invest RM700 million in nationwide biogas facilities that convert palm-oil waste into bio-compressed natural gas (bio-CNG) and create internationally tradeable carbon credits.

The first facility will receive an initial RM30 million investment. 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 284,000 tonnes of carbon dioxide (CO2) annually.

The collaboration will accelerate the commercialisation of palm oil mill effluent (POME) into bio-CNG technology, and generate Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2 of the Paris Agreement.

Bioeconomy Corp is under purview of the Ministry of Science, Technology, and Innovation Malaysia.

Bioeconomy Corporation chief executive officer Mohd Khairul Fidzal Abdul Razak said that over the past two years, Bioeconomy Corp has witnessed a series of bioenergy partnerships from its BioNexus Status and Bio-based Accelerator (BBA) 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 added.

Polaris Bio CEO Junghwan Kim said the company has been actively engaged in Malaysia’s pioneering POME-to-Bio-CNG initiatives since 2020.

He added that the 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.