Malaysia to submit Carbon Capture Bill to parliament in March

Malaysia's Economy Minister Rafizi Ramli reveals CCUS Bill to be submitted in March. (Photo: X/Rafizi Ramli)

To achieve its net-zero target, the Malaysian government is adopting various carbon reduction technologies, with carbon capture set to present a development draft in March to help hard-to-decarbonize industries transition. According to TA Securities, Malaysia’s carbon capture technology is expected to attract over $10 billion in capital investments within the next five years.

Malaysia pushes CCUS Bill to establish one-stop regulatory body

On March 5, after attending a research report release event co-hosted with the World Bank, Malaysia's Minister of Economy, Rafizi Ramli, told reporters that the drafting of the Carbon Capture, Utilisation, and Storage Progressive Regulatory Framework Bill was in its final stages and is expected to be submitted to Parliament for review in the first week of March.

In July 2023, the Malaysian government unveiled the National Energy Transition Roadmap (NETR), which included carbon capture as one of six key decarbonization initiatives. By 2030, Malaysia plans to establish two CCUS centers on the peninsula and one in Sarawak, with a total carbon capture capacity of 15 million tons per year.

According to the Ministry of Economy's website, the bill will cover the entire industry chain, including the capture, transportation, utilization, and storage of CO2. Additionally, a one-stop regulatory body will be established, along with the appointment of a technically competent entity to oversee offshore and onshore storage.

In September last year, Rafizi mentioned that Malaysia had signed cooperation agreements with several countries to attract bidders for CCUS projects, estimating that this would create 200,000 new jobs and generate a gross value of around $250 billion over the next 30 years.

The Malaysian Houses of Parliament. (Photo: iStock)

Malaysia’s CCUS potential attracts over $10 billion investment

One of the prominent ongoing projects is the collaboration between Malaysia’s state-owned oil company, Petronas, the Abu Dhabi National Oil Company (ADNOC), and UK-based carbon management firm Storegga, to develop a project in the Penyu Basin off the peninsula’s coast. Once completed, it is expected to store at least 5 million tons of CO2 annually.

TA Securities is optimistic about the potential of Malaysia’s carbon capture technology. Their report highlights that with blended financing and public-private partnerships, carbon capture growth will extend across various sectors. Furthermore, after monetizing captured carbon, Malaysia has the opportunity to become a key player in the emerging global carbon economy.

The firm believes that Malaysia’s geological advantages, coupled with the existing infrastructure of the oil and gas industry, provide an excellent foundation for carbon capture development. For oil and gas companies, carbon capture will be a vital technology for sustaining long-term development and enhancing competitiveness. TA Securities forecasts that, based on the government’s goal of capturing 40 to 80 million tons of CO2 annually, investment in carbon capture projects will exceed $10 billion by 2030.

Source: Myccus, Edge Malaysia, Carbon Herald