The Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation) has partnered with South Korea’s Polaris Bio Co Ltd to develop a network of palm oil mill effluent (POME)-based biogas upgrading facilities across Malaysia, marking a major step in the nation’s renewable energy (RE) transition.
The collaboration will begin with a pilot investment of RM30 million, part of a total RM700 million plan to build over 20 Bio-Compressed Natural Gas (Bio-CNG) facilities nationwide. Once fully operational, the network is expected to cut up to 384,000 tonnes of CO2 equivalent annually while generating internationally tradable carbon credits under Article 6.2 of the Paris Agreement.
Bioeconomy Corporation CEO Mohd Khairul Fidzal Abdul Razak said the initiative represents a breakthrough in turning palm industry waste into clean energy.
“Recent advances have made it possible to upgrade biogas into Bio-CNG, biomethane and green chemicals, creating new opportunities for decarbonisation and bio-based industrial integration,” he said.
He added that renewed investor interest through Bioeconomy Corporation’s BioNexus Status and Bio-based Accelerator companies reflects growing confidence in Malaysia’s bioenergy sector.
Polaris Bio CEO Junghwan Kim said the project sets a benchmark for international climate collaboration.
“Building on our experience with Malaysia’s pioneering POME-to-Bio-CNG initiatives since 2020, this partnership expands Korea-Malaysia cooperation in RE and carbon markets,” he said.
The memorandum of understanding was exchanged in the presence of Deputy Prime Minister and Minister of Energy Transition and Water Transformation Datuk Seri Fadillah Yusof at the opening of the National Innovation and Creative Economy Expo 2025 in Kuala Lumpur.
