TA Securities has estimated that Malaysia’s carbon capture technologies could attract over $10 billion in capital expenditures by 2030, in line with the government’s National Energy Transition Roadmap (NETR) target of 40-80 million tons per annum (MTPA).
The research house said in a note that the implementation of carbon capture and storage (CCS) and carbon capture, utilization, and storage (CCUS) technologies offers a substantial economic opportunity for Malaysia.
It is noted that past projects such as the Kasawari project, required an investment of $1 billion.
According to TA, the carbon capture technologies growth will span various sectors, particularly with the backing of blended financing and public-private partnerships.
“The successful realization of these investments will accelerate Malaysia’s transition to a low-carbon economy and bolster climate resilience,
“However, the projects are currently considered marginally bankable, as the returns are below market rates,” it said.
In addition to these direct economic contributions, TA noted the development of a carbon trading market presents a lucrative revenue stream.
“By monetizing captured carbon, Malaysia can position itself as a key player in the emerging global carbon economy,” it added.
On the environmental front, TA opined that CCS and CCUS technologies offer a scalable solution to curb Malaysia’s greenhouse gas emissions.
It noted the Kasawari CCS project is projected to reduce emissions by approximately 1 percent annually, capturing 3.3 million tons of carbon dioxide (CO₂) compared to the 330.4 million tons emitted in 2019.
“Our analysis suggests that scaling similar initiatives could lead to a 10% reduction in national emissions by 2030, advancing Malaysia’s climate commitments,” it added.
Indeed, CCS and CCUS technologies are no longer optional for Malaysia’s oil and gas sector; they are essential for achieving sustainability and maintaining competitiveness
in a rapidly evolving energy landscape, said TA.
With strong policy support, strategic partnerships, and a clear vision for the future, it opined that Malaysia is well-positioned to become a leader in carbon management technologies.
It views CCUS initiatives positively and would serve as a catalyst for Malaysia’s oil and gas industry.
Cited McKinsey & Company, TA noted that Malaysia’s geological landscape provides a strong foundation for positioning the country as a regional hub for CCS.
Many of its major gas-producing fields, nearing the end of their productive lifespan, are ideally suited for CO₂ storage due to their structural integrity and the ability to repurpose existing infrastructure, such as injection wells and platforms.
Malaysia Petroleum Management has also identified over 46 trillion cubic feet (equivalent to 2.4 gigatons) of potential CO₂ storage capacity across 16 depleted fields.
This geological advantage underscores Malaysia’s potential to lead regional decarbonization efforts by leveraging its abundant natural storage sites effectively.
It is noted that the policy support provided by the NETR and the New Industrial Master Plan (NIMP) 2030 underscores the government’s commitment to making CCS and CCUS central to
its decarbonization strategy.
By integrating these technologies into national planning, Malaysia creates a conducive environment for investment, innovation, and collaboration.
Strategic collaborations with global energy giants further enhance Malaysia’s capabilities in CCS and CCUS, said TA.
It believes these partnerships, such as those forged by Petroliam Nasional Berhad (Petronas) with TotalEnergies, Mitsui, and other industry leaders, will enhance Malaysia’s position as a leader in CCS technology in Southeast Asia.
According to TA, these collaborations aim to develop state-of-theart infrastructure, exemplified by projects like the Kasawari CCS initiative, which underscores Petronas’s commitment to innovative carbon management solutions.
The Kasawari CCS project exemplifies this commitment, targeting a reduction of approximately 3.3 million tonnes of CO₂ annually.
TA opined that such projects not only mitigate emissions but also establish Malaysia as a hub for carbon management expertise.
Malaysia’s National Energy Transition Roadmap (NETR) also positions CCUS as one of its ten flagship catalyst projects, underscoring its strategic importance in the nation’s journey towards a sustainable energy future.
By 2030, the roadmap envisions the establishment of three CCUS hubs—two in Peninsular Malaysia and one in Sarawak—as foundational infrastructure for large-scale implementation.
Looking further ahead, by 2050, Malaysia aims to achieve a storage capacity of between 40 to 80 MTPA through these hubs.
The roadmap indicates that the energy sector is projected to reduce GHG emissions by 32 percent, from 259 MtCO2eq in 2019 to 175 MtCO2eq by 2050.
The implementation of CCUS technologies is expected to further reduce emissions, with projected GHG emissions in 2050 estimated at 164 MtCO2eq with CCUS, compared to 175 MtCO2eq without, implying a contribution of 12 MtCO2eq through the adoption of CCS.
The NETR builds on the comprehensive framework provided by the National Energy Policy (NEP) 2022-2040.
This alignment ensures that CCUS development is integrated with broader energy transition objectives, including renewable energy adoption, energy efficiency improvements, and decarbonization of key industrial sectors.
By embedding CCUS within the NETR, Malaysia signals its commitment to balancing economic growth with environmental sustainability.
The New Industrial Master Plan (NIMP) 2030 also outlines a strategic approach to deploying large-scale CCUS solutions as a means of decarbonizing hard-to-abate sectors such as
petrochemicals, manufacturing, and power generation.
To execute these objectives effectively, the NIMP highlights the importance of a robust regulatory framework.
This framework will provide the clarity and stability required to attract investment and drive innovation.
Additionally, the plan integrates CCUS as a key enabler for mission-based project (MBP) 3.3, which focuses on achieving net-zero emissions through technology-driven solutions.
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