# Malaysia and South Korea Sign LOI for MYR700 Million Bio-CNG Pipeline Targeting 20+ Plants Across Malaysia
*Author: Eternalgy Market Intelligence Team | Category: news | Published: Fri Jun 19 2026 00:00:00 GMT+0000 (Coordinated Universal Time)*

## English

* **Partnership signed**: Malaysia and South Korea signed a Letter of Intent (LOI) for the Terengganu Palm Oil Mill Biogas Upgrading Project, targeting bio-CNG production from palm oil mill effluent (POME)
* **Korean partners**: Polaris Bio Co Ltd and Sudokwon Landfill Site Management Corporation (SLC) partnered with Malaysian firm MTC Orec Sdn Bhd
* **Investment scale**: MYR 700 million (approximately USD 169 million) pipeline to develop over 20 bio-CNG plants across Malaysia
* **CO2 reduction**: The project is expected to avoid up to 384,000 tonnes of CO2 equivalent annually, supporting Malaysia's decarbonisation goals
* **Paris Agreement milestone**: This is the first Malaysia-South Korea initiative recognised under Article 6.2 of the Paris Agreement, generating Internationally Transferred Mitigation Outcomes (ITMOs)
* **Timeline**: Preliminary development is set for 2027, with commercial operations targeted for 2029
* **Coordinating body**: The Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation) is coordinating the initiative
* **Feedstock**: POME — generating 2.5 to 3.5 tonnes of waste per tonne of crude palm oil produced — provides abundant feedstock for bio-CNG conversion
* **SLC track record**: The Korean partner has achieved 8.82 million tonnes of GHG reductions since 2006, bringing proven expertise to the partnership
* **Signing venue**: The LOI was signed at DoubleTree by Hilton, Putrajaya

## 中文

* **签署合作伙伴关系**：马来西亚与韩国签署意向书（LOI），启动登嘉楼棕榈油厂沼气升级项目，利用棕榈油厂废水（POME）生产生物压缩天然气（bio-CNG）
* **韩方合作伙伴**：韩国Polaris Bio Co Ltd和首都圈垃圾填埋场管理公社（SLC）与马来西亚MTC Orec Sdn Bhd合作
* **投资规模**：总投资约7亿令吉（约1.69亿美元），计划在马来西亚建设超过20座bio-CNG工厂
* **碳减排**：该项目预计每年可避免高达38.4万吨二氧化碳当量的排放，助力马来西亚脱碳目标
* **巴黎协定里程碑**：这是首个获得巴黎协定第6.2条认可的马来西亚-韩国合作项目，可产生国际转让减缓成果（ITMOs）
* **时间表**：初步开发计划于2027年启动，商业运营目标为2029年
* **协调机构**：马来西亚生物经济发展机构（Bioeconomy Corporation）负责协调该倡议
* **原料来源**：POME——每生产一吨棕榈原油产生2.5至3.5吨废水——为bio-CNG转化提供了丰富的原料
* **SLC业绩记录**：韩方合作伙伴自2006年以来已实现882万吨温室气体减排，为合作带来了成熟的专业经验
* **签署地点**：意向书在布城希尔顿逸林酒店签署