Malaysia stands to secure over $10 billion (RM44.58 billion) in capital expenditure (capex) for carbon capture technologies by 2030, driven by robust policy support and a growing emphasis on sustainable energy solutions, according to research from TA Securities.
In a recent analysis, the firm highlighted that the anticipated influx of investment will span multiple sectors, leveraging blended financing models and public-private partnerships. These measures are expected to accelerate Malaysia’s transition to a low-carbon economy while enhancing climate resilience.
“Carbon capture technologies, including storage and utilisation, are no longer optional for Malaysia’s oil and gas sector,” the report noted. “They have become indispensable for ensuring sustainability and maintaining competitiveness in an increasingly dynamic global energy market.”
Essential Technology for Sustainability
Carbon capture and storage (CCS) involves capturing carbon dioxide emissions directly at their source and storing them securely underground. Beyond storage, the captured CO₂ can be utilised for industrial purposes such as enhanced oil recovery or as a raw material in manufacturing processes.
The report underscored Malaysia’s growing role in the region’s carbon capture ecosystem, pointing to partnerships such as those spearheaded by the national oil and gas company Petronas. These collaborations position Malaysia as a hub for carbon management expertise in Southeast Asia.
In June 2023, Petronas signed an agreement with Japan’s Mitsui & Co and France’s TotalEnergies to jointly develop a carbon capture and storage site. The consortium aims to deliver Asia-Pacific’s first integrated CCS solution for industrial sectors, marking a significant milestone in regional decarbonisation efforts.
Policy and Strategic Backing
TA Securities also highlighted Malaysia’s New Industrial Master Plan and National Energy Transition Roadmap as key enablers of the anticipated investment boom. These strategic frameworks provide a clear direction for integrating carbon capture technologies into national development plans, fostering a conducive environment for innovation and collaboration.
“By embedding CCS technologies into broader national policy planning, Malaysia is creating the conditions necessary for sustainable growth and long-term investment confidence,” the report said.
Key Beneficiaries in Malaysia’s CCS Ecosystem
Among the primary beneficiaries of Malaysia’s carbon capture initiatives are MISC Bhd, Pantech Group Holdings Bhd, and Wasco Bhd, according to TA Securities.
MISC, a global leader in maritime logistics, is advancing the development of liquefied carbon dioxide (LCO₂) shipping carriers, a crucial component in the carbon capture value chain, enabling efficient and reliable CO₂ transportation.
Wasco, known for its expertise in pipeline coating technologies, stands to benefit from increased demand for durable and efficient infrastructure for carbon dioxide transport. Similarly, Pantech Group, a key player in supplying steel pipes, fittings, and related materials, is well-positioned to capitalise on the sector’s growth.
As Malaysia continues to align its energy transition goals with global sustainability targets, the integration of carbon capture technologies is set to play a pivotal role in shaping the nation’s energy and industrial landscape over the next decade.
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