The initiative will see the conversion of palm oil mill effluent( POME), agricultural waste, and biomass residues into renewable gas to supply industrial users, logistics operators, and the upcoming Citaglobal Bioenergy & Green Eco Park in Gebeng, Pahang. The project aims to promote circular economy principles by converting waste streams into a sustainable source of energy.

Under the two-year JDA, Citaglobal’ s subsidiary Citaglobal Bioenergy Sdn Bhd will be responsible for feedstock sourcing, regulatory compliance, and securing land, while Keppel Decarb will provide technical expertise, including sustainability audits and traceability systems. Both parties may form a special-purpose vehicle( SPV) for financing, construction, and operations— with Citaglobal expected to hold a majority stake.

“ The collaboration underscores our shared vision of decarbonising Malaysia’ s industrial base and unlocking value from agricultural waste,” said Citaglobal executive chairman Tan Sri Mohamad Norza

Zakaria.

“ Bio-CNG represents the next frontier in Malaysia’ s clean-energy mix— complementing solar, hydropower, and waste-to-energy solutions.”

The east coast, with its strong palm-oil industry and emerging industrial corridors, provides an ideal base for bio-CNG development. The plants are planned for Pahang, Terengganu, and Kelantan, with each location chosen for its access to biomass sources, transport links, and proximity to nearby industrial estates.

GREEN INDUSTRIAL ECOSYSTEM

The bio-CNG output will also serve as a cornerstone for the Citaglobal Bioenergy & Green Eco Park, a 247-acre development in Gebeng envisioned as a low-carbon industrial hub integrating renewable energy, advanced recycling, and clean manufacturing.

By supplying locally produced bio-CNG, Citaglobal aims to reduce dependence on imported natural gas while creating new opportunities for rural communities through waste collection, logistics, and feedstock management. The company anticipates the venture will generate recurring income streams and long-term carbon savings, in line with Malaysia’ s National Energy Transition Roadmap( NETR).

Keppel Decarb, part of the Keppel Group’ s decarbonisation arm, brings proven expertise in sustainable energy systems and

infrastructure management. Its involvement is expected to enhance operational standards and ensure alignment with international ESG benchmarks.

BROADER CLEAN-ENERGY PUSH

The bio-CNG partnership is part of Citaglobal’ s wider renewable energy expansion strategy. The company recently signed a US $ 2 billion partnership with Abu Dhabibased Masdar and Malaysia’ s TIZA Global to develop large-scale solar and battery energy storage system( BESS) projects capable of delivering up to 10 GW of clean-energy capacity nationwide.

Citaglobal has also entered into a waste-to-energy collaboration with Shanghai SUS Environment Co., Ltd. and acquired Germany’ s LAWI Engineering GmbH, a specialist in biomass and thermal energy recovery technologies. These moves provide Citaglobal with direct access to advanced WTE systems, enabling integration across its clean-energy portfolio.

In addition, the company leads a consortium that has secured a 30-year concession to provide energy— including renewables— for the East Coast Rail Link( ECRL) network, aiming for a renewable contribution of up to 30 per cent to the power mix.

Internationally, Citaglobal has signed renewable-energy agreements with Kyrgyzstan’ s Ministry of Energy, is piloting a solar-telecom hybrid project in East Java,

Indonesia, and recently announced a 5.4 MW solar-plus-storage project at the Port of Baku, Azerbaijan.

“ These partnerships reflect our transformation from an infrastructure-focused company into a regional clean-energy player,” Norza added.

“ We are building an ecosystem that combines solar, bioenergy, and storage— technologies that can deliver both profit and purpose.”

OUTLOOK AND CHALLENGES

Analysts note that execution and regulatory approvals will be critical to the bio-CNG plan’ s success. Land acquisition, feedstock consistency, and financing structures remain potential hurdles. However, Malaysia’ s policy incentives under the NETR, coupled with rising industrial demand for renewable gas, could make the venture commercially attractive.

Industry observers see Citaglobal’ s multi-faceted approach— spanning bioenergy, solar, storage, and waste-to-energy— as positioning the company among Malaysia’ s most diversified renewable players. Its strategy also aligns with the government’ s goal of achieving 70 per cent renewable capacity by 2050.

If realised, the Citaglobal-Keppel initiative could become a flagship model for public-private cooperation in the bioenergy sector— one that transforms waste into wealth while driving regional economic growth.- @ green