Bioeconomy Corporation & Polaris Bio Seal RM700 Mil MoU at NICE 2025

^{(Centre) Deputy Prime Minister and Minister of Energy Transition and Water Transformation, YAB Dato’ Sri Haji Fadillah Yusof witnessed the exchange of memorandum of understanding between (far left) Chief Executive Officer of Bioeconomy Corporation, En. Mohd Khairul Fidzal Abdul Razak and (far right) Polaris Bio’s Chief Executive Officer, Mr. Junghwan Kim at the opening ceremony of the National Innovation and Creative Economy Expo 2025 (NICE 2025) at the World Trade Centre Kuala Lumpur on 6 October 2025. They were joined by (second from left) Deputy Minister of Science, Technology and Innovation, Dato' Haji Mohammad Yusof Bin Apdal and (second from right) Deputy Secretary General (Technology Development) of the Ministry of Science, Technology and Innovation, Puan Norsham binti Abdul Latip.}


Malaysia-South Korea to expand biogas innovation and accelerate decarbonisation with plans for nationwide initiatives

KUALA LUMPUR, Oct 6 (Bernama) -- Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation), under the purview of the Ministry of Science, Technology and Innovation Malaysia, has entered into a collaboration with South Korea-based renewable energy company Polaris Bio Co., Ltd. (Polaris Bio) to develop palm oil mill effluent (POME)-based biogas upgrading facilities in Malaysia as part of renewable energy investments.
 
An initial RM30 million will be invested in the first facility as part of the RM 700 million total planned investments. This pilot project will validate the technical and financial feasibility of biogas upgrading and pave the way for the nationwide rollout of more than 20 facilities, which are expected to cut up to 384,000 tonnes of CO₂ equivalent each year.
 
The partnership will accelerate the commercialisation of biotechnology converting palm oil mill effluent (POME) into Bio-Compressed Natural Gas (Bio-CNG), a sustainable fuel, while also creating internationally tradable carbon credits – known as Internationally Transferred Mitigation Outcomes (ITMOs) under Article 6.2 of the Paris Agreement.
 
According to Bioeconomy Corporation’s Chief Executive Officer, En. Mohd Khairul Fidzal Abdul Razak, biogas development from oil palm biomass and waste in Malaysia has long been recognised as a strategic opportunity. While early projects faced inconsistent yields, high maintenance costs, and limited downstream integration, recent technological advances have improved efficiency and reliability, enabling biogas to be upgraded into Bio-CNG, biomethane, and green chemicals - making it a viable pathway for decarbonisation and integration into Malaysia’s renewable energy and bio-based industrial ecosystem.
 
“Over the past two years, Bioeconomy Corporation has witnessed a series of bioenergy partnerships from its BioNexus Status and Bio-based Accelerator (BBA) companies, signaling a surge of activity in the sector and renewed investor confidence. This is reflected in our partnership with Polaris Bio, which will advance the government’s push to position bioenergy at the heart of Malaysia’s energy transition and power the country’s circular bioeconomy,” he added.
 
Polaris Bio’s Chief Executive Officer, Mr. Junghwan Kim, said the collaboration with Bioeconomy Corporation opens new opportunities for scaling bioenergy solutions in Malaysia, while setting a benchmark for cross-border climate partnerships.
 
“Since 2020, Polaris Bio has been actively engaged in Malaysia’s pioneering POME-to-Bio-CNG initiatives. Building on this proven track record, we are now delighted to embark on direct investments in partnership with the Government of Korea, including the Ministry of Climate, Energy and Environment, its agency the Sudokwon Landfill Site Management Corporation, and leading Korean private enterprises. This collaboration not only reinforces Korea–Malaysia cooperation in renewable energy and carbon markets, but also stands as the first bilateral endeavour under Article 6.2, enhancing carbon market development in both nations,” he stated.
 
Deputy Prime Minister and Minister of Energy Transition and Water Transformation, YAB Dato’ Sri Haji Fadillah Yusof witnessed the exchange of memorandum of understanding between En. Mohd Khairul Fidzal Abdul Razak and Mr. Junghwan Kim at the opening ceremony of the National Innovation and Creative Economy Expo 2025 (NICE 2025) in Kuala Lumpur today.
 
The partnership represents a timely step in aligning national priorities with international investment to reinforce Malaysia’s low-carbon transition under the National Energy Transition Roadmap (NETR) and its target of 40% renewables in the primary energy mix by 2035, while supporting the goals of the National Biotechnology Policy 2.0 to drive sustainable bio-based industries and innovation for the nation’s circular economy.
  
Malaysian Bioeconomy Development Corporation (Bioeconomy Corporation) is Malaysia’s leader in economic development for the biotechnology and bio-based industries, operating under the purview of the Ministry of Science, Technology and Innovation.
 
Bioeconomy Corporation supports businesses, academia, and scientific communities by providing facilitation, advisory, as well as ecosystem development services, covering business, investment, R&D, human capital development, financial infrastructure, legal and regulatory framework, with government support and commitment.
 
Its flagship programmes include BioNexus Status, a government-supported recognition awarded to eligible biotechnology companies, granting them access to growth incentives. It also offers the Bio-based Accelerator Programme to help emerging bio-based companies scale up and commercialise their innovations.
 
For further details, visit www.bioeconomycorporation.my
 
About Polaris Bio
 
Polaris Bio Co., Ltd. is a renewable energy company headquartered in the Republic of Korea, focusing on circular economy solutions through waste-based biofuels, biogas upgrading, biomethane production, and carbon credit projects. Founded in 2019, Polaris has expanded across Asia, with active operations in Korea, Vietnam, and Thailand. The company is recognised for its technical expertise in biofuel and biogas systems and its pioneering role in implementing carbon reduction initiatives under international frameworks, including Article 6.2 of the Paris Agreement.
 
SOURCE: Bioeconomy Corporation
 
FOR MORE INFORMATION, PLEASE CONTACT: 
Bioeconomy Corporation
Name: Nur Akmar Yusoff
Senior Executive,
Strategic Communication
Malaysian Bioeconomy Development Corporation
Email: akmar.yusoff@bioeconomycorporation.my

--BERNAMA