Malaysia, South Korea Strengthen Renewable Energy Partnership Through Terengganu Bio-CNG Project
KUALA LUMPUR, June 19 (Bernama) -- Malaysia and South Korea have further strengthened their strategic partnership in renewable energy following the exchange of a letter of intent (LOI) for the Terengganu State Palm Oil Mill Biogas Upgrading Project, an initiative that will convert waste from the palm oil industry into bio-compressed natural gas (Bio-CNG).
Supported and coordinated by the Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation), the project brings together South Korean renewable energy companies Polaris Bio Co Ltd and Sudokwon Landfill Site Management Corporation (SLC), along with Malaysian technology partner MTC Orec Sdn Bhd.
In a joint statement, the companies said the collaboration aims to unlock the commercial potential of waste from the palm oil industry by converting it into a high-value clean energy source.
Bioeconomy Corporation chief executive officer Mohd Khairul Fidzal Abdul Razak said the Terengganu Bio-CNG Project marks an important milestone in the development of Malaysia’s palm oil waste-based Bio-CNG industry, while reinforcing the country’s position as a preferred destination for bioeconomy and renewable energy investments in the region.
“Building on the RM700 million investment pipeline announced last year, this initiative demonstrates that Malaysia’s POME-to-Bio-CNG ambitions are moving beyond the feasibility stage into actual implementation.
“This development comes at a time when global biogas and biomethane production is projected to increase by 22 per cent between 2025 and 2030. We look forward to seeing this strategic partnership continue to grow and contribute to the advancement of Malaysia’s bioeconomy and renewable energy sectors,” he said.
Mohd Khairul Fidzal said Malaysia’s palm oil industry generates substantial volumes of biomass and by-products that can be converted into high-value renewable energy resources.
He said innovations such as Bio-CNG can transform palm oil waste into new economic opportunities while strengthening energy security and supporting the country’s low-carbon development agenda.
Throughout the project development process, Bioeconomy Corporation has played a strategic role in connecting Malaysian and Korean stakeholders through investment facilitation, government engagement and market access support.
Its involvement has further strengthened investor confidence in Malaysia’s growing bioeconomy and renewable energy sectors.
Meanwhile, SLC president Song Byeong-eok said the organisation remains committed to supporting international climate initiatives that deliver both environmental and economic benefits.
“SLC has developed extensive expertise in greenhouse gas reduction initiatives and has achieved more than 8.82 million tonnes of greenhouse gas reductions since 2006.
“We look forward to the successful implementation of this project while further strengthening renewable energy cooperation between Korea and Malaysia,” he added.
The project will initially involve one palm oil mill in Terengganu, with plans for future expansion. Preliminary development activities are expected to commence in 2027, and commercial operations are targeted to begin in 2029.
Beyond renewable energy generation, the project is expected to facilitate bilateral technology transfer between Malaysia and Korea, create employment opportunities, strengthen local expertise, and contribute to the development of a more resilient bioeconomy ecosystem.
-- BERNAMA
