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Malaysia and South Korea plan to build 20 bio-CNG plants to turn palm oil waste into renewable gas. (Photo: iStock)
Malaysia and South Korea have signed a letter of intent (LOI) to develop a bio-compressed natural gas (bio-CNG) project that will convert palm oil waste into renewable gas. The facility is the first project in a proposed MYR 700 million (USD 169 million) investment pipeline targeting more than 20 biogas upgrading plants across Malaysia.
Bio-CNG is produced by purifying and compressing biogas to increase methane concentrations to typically between 92% and 98%. In this project, the feedstock is POME (Palm Oil Mill Effluent), the liquid by-product generated during palm oil milling.
The project is also the first Malaysia-South Korea initiative to receive formal recognition under Article 6.2 of the Paris Agreement, allowing the project to generate Internationally Transferred Mitigation Outcomes (ITMOs).
Unlock the full article to explore three key takeaways:
- Malaysia and South Korea plan to develop more than 20 bio-CNG plants that could avoid up to 384,000 tonnes of CO₂e annually, with Terengganu serving as the pilot project.
- Malaysia’s palm oil industry generates 2.5 to 3.5 tonnes of palm oil mill effluent (POME) for every tonne of crude palm oil produced, creating a concentrated feedstock base for biomethane production.
- The IEA estimates Southeast Asia’s sustainable biogas resources could equal around half of current natural gas demand.
