Bilateral Deals To Boost Investment, Lower CCUS Infrastructure Costs In Malaysia

KUALA LUMPUR, Nov 3 (Bernama) -- The signing of bilateral agreements with foreign countries is expected to spur investment inflows and help offset the cost of developing carbon capture, utilisation and storage (CCUS) industrial hub infrastructure in Malaysia.

Deputy Economy Minister Datuk Hanifah Hajar Taib said collaborations with countries such as Singapore, South Korea and Japan would position Malaysia as a CCUS hub in the Asia-Pacific region.

“This will in turn pave the way for new business opportunities, including the provision of permanent carbon dioxide (CO2) capture and storage services,” she told the Dewan Rakyat during the question-and-answer session today.

She was responding to a question from Muhammad Islahuddin Abas (PN–Mersing) on the government’s concrete measures and commitment to developing the CCUS industry as a new source of national revenue.

Hanifah Hajar said the government would implement a pilot project on CO2 capture in the iron and steel industry in Kemaman, Terengganu, which would serve as a reference to assess CCUS potential as part of industrial carbon integration efforts.

“The government also plans to develop CCUS hubs in strategic locations to build a complete ecosystem that can generate economic spillover benefits in those areas,” she added.

Malaysia has an estimated carbon storage capacity of 13.3 gigatonnes, one of the largest in the region, and its available storage sites could be utilised to accommodate CO2 captured from foreign sources.

She said importing CO2 from other countries could help offset the high cost of developing CCUS hub infrastructure.

-- BERNAMA