Kuala Lumpur: Renewable energy company reNIKOLA Holdings Sdn Bhd has signed a memorandum of understanding (MoU) with Japanese trading house Sumitomo Corporation to jointly develop large-scale bioenergy projects in Malaysia and Indonesia. The initiative marks a significant step toward advancing the region’s clean energy transition.

According to BERNAMA News Agency, the MoU was signed at the Malaysia Pavilion during Expo 2025 Osaka. This collaboration will focus on converting palm oil production residues into advanced renewable fuels, specifically targeting the development of biomethane and low-carbon derivatives such as liquefied biomethane (LBM) and biomethanol. The initiative aims to bolster the region’s energy resilience by transforming palm oil waste into sustainable fuel while leading efforts to decarbonize the palm oil sector.

The collaboration between reNIKOLA and Sumitomo is set to accelerate the transformation of Malaysia and Indonesia, the world’s largest palm oil producers, into low-carbon economies. The partnership is expected to contribute to a carbon-neutral society by establishing a sustainable energy cycle and advancing global decarbonization efforts.

reNIKOLA’s managing director, Boumhidi Abdelali, emphasized the importance of the partnership in supporting cleaner energy development in Malaysia and Indonesia while promoting sustainable practices within the palm oil industry. He acknowledged the support and recognition from Bioeconomy Corp, under whose Bio-based Accelerator Program reNIKOLA is registered. The company is also in the process of obtaining BioNexus Status, which offers benefits to eligible biotechnology companies.

Sumitomo Corporation’s head of Indonesia energy solutions, Takechi Muramatsu, expressed enthusiasm for the collaboration with reNIKOLA, highlighting the shared focus on sustainable growth and energy transition. By combining expertise and resources, the partnership aims to set new standards for innovation, environmental responsibility, and low-carbon energy solutions in the region, driving Asia’s clean energy transition.

The MoU was signed by Abdelali and Muramatsu and witnessed by Ministry of Science, Technology and Innovation secretary general Datuk Seri Hasnol Zam Zam Ahmad.