KUALA LUMPUR, March 2 -- Gas Malaysia Bhd has partnered Kulim Greenergy Sdn Bhd to produce Compressed Bio-Methane (Bio-CNG) to be injected into Gas Malaysia's Natural Gas Distribution System network.
In a joint statement, the companies said the Bio-CNG will be supplied by Kulim (Malaysia) Bhd’s palm oil mills, namely Tereh and Sindora located in Kluang, Johor.
The gas purchase agreement was formalised between Gas Malaysia's wholly-owned subsidiary Gas Malaysia Virtual Pipeline Sdn Bhd and Kulim Greenergy, a wholly-owned Kulim subsidiary.
Gas Malaysia group chief executive officer Ahmad Hashimi Abdul Manap said there is potiential for renewable and sustainable energy adoption in Malaysia, which is further complemented by a progressively evolving green energy landscape.
"We are honoured to partner Kulim Greenergy on this green venture. We firmly believe that the future lies in renewable and sustainable energy," he said.
Gas Malaysia said the partnership is part of its diversification strategy to explore other avenues within the gas value chain to further consolidate its position in the industry.
Meanwhile, Kulim managing director Mohd Faris Adli Shukery said the venture is one of the group’s efforts to realise its commitment in the circular economy as part of Kulim’s “Trash to Treasure” initiatives.
The circular economy refers to using resources sustainably with emphasis on recycling and reusing in order to reduce waste from households to businesses to government.
"It is in line with Kulim’s aspiration to incorporate sustainable practices in our business activities. We expect this effort to contribute positively to the group’s earnings by turning our compliance cost into a new income stream," Mohd Faris said.
The green gas venture is a positive step towards supporting the nation’s aspiration as Gas Malaysia and Kulim Greenergy leverage each other’s expertise for their long-term growth.
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