Malaysia: 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).
According to BERNAMA News Agency, the project is supported and coordinated by the Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation). It 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 stated that 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. He emphasized that Malaysia's POME-to-Bio-CNG ambitions are moving beyond the feasibility stage into actual implementation.
Mohd Khairul Fidzal highlighted that Malaysia's palm oil industry generates substantial volumes of biomass and by-products that can be converted into high-value renewable energy resources. He noted that 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 expressed the organisation's commitment to supporting international climate initiatives that deliver both environmental and economic benefits. He noted that SLC has developed extensive expertise in greenhouse gas reduction initiatives and has achieved significant greenhouse gas reductions since 2006.
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.