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Malaysia’s BAC Renewable Energy to build a biofuel storage and export hub at Tanjung Langsat Port in Johor. (Image: TLP Terminal)
A new biofuels hub focused on Bio-Liquefied Natural Gas (Bio-LNG) will be established in the Johor-Singapore Special Economic Zone (JS-SEZ), with the capacity to process 350,000 tons of Bio-LNG annually.
Developers emphasize that this cross-border collaboration has already secured partial funding, with green investments expected to reach 1.5 billion ringgit (about 337 million USD).
Bio-LNG processing hub with an annual capacity of 350,000 tons
On Feb. 6, Malaysia’s biofuel company BAC Renewable Energy (BAC RE), along with Singapore’s Dovechem Group and Tanjung Langsat Port Terminal (TLP Terminal), signed an MOU to build a biofuels plant in Johor. The project, named the "BAC RE ASEAN Biofuels Storage and Exporting Hub," aims to serve as a major regional biofuel facility.
According to the agreement, BAC RE will oversee the development, while Dovechem Group will provide the land and take on operational responsibilities. TLP Terminal, a subsidiary of Johor Corporation (Johor Corp), will manage port operations.
The project will be carried out in two phases. In the first phase, the hub will have the capacity to produce and handle 33,000 tons of Bio-LNG annually, with a storage capacity of approximately 7,500 cubic meters. This will gradually scale up to 350,000 tons per year, with an estimated construction cost of 150 million ringgit (about 33.7 million USD). In the second phase, the facility will expand its services to include storage and processing of Bio-Methanol.
Signing ceremony was held on the 6th with representatives from BAC RE, Dovechem Group, and TLP Terminal. (Photo: BAC RE)
Johor expedites investment process to attract foreign capital
Given the abundant bio-waste generated during palm oil production, which provides a rich feedstock for Bio-LNG, BAC RE estimates that the region could supply up to 3.3 million tons of biofuels annually. The company hopes the establishment of the storage and export hub will help promote the adoption of biofuels in shipping, supporting the industry’s decarbonization goals.
BAC RE Director Hasnoel Ramly explained that Tanjung Langsat Port was chosen due to its strategic location as one of the three major ports in the JS-SEZ. The port’s proximity to the Malacca Strait and Singapore, the world’s largest bunkering hub, further enhances its appeal.
Ramly also highlighted the incentives offered by the JS-SEZ, which will drive biofuel development and create business opportunities. The project is expected to attract investments in green technology and engineering, with total investments estimated to reach 1.2 to 1.5 billion ringgit.
Malaysia's vast palm plantations provide abundant feedstock for biofuel development. (Photo: iStock)
To further facilitate foreign investments, Malaysia established the Invest Malaysia Facilitation Centre Johor (IMFC-J) in Johor at the end of last year. The initiative, alongside the Johor Super Lane project, aims to streamline regulatory and approval processes. Proposals related to biofuels have been selected as one of the first five pilot projects.
Source: Edge Malaysia, The Star
