Waste to Energy: Scaling Biogas and the Circular Bioeconomy

Remarks by:

• His Excellency Michel Deelen, Ambassador-Designate of the Kingdom of the Netherlands to Malaysia

• Dr. Gary Theseira, Chair of the Council, Climate Governance Malaysia (CGM)

Keynote Speaker: 

• Natalia Walczak, Corporate Relations Manager, European Biogas Association

Panellists: 

• Cynthia Ong, Chief Executive Facilitator and Board Director, Forever Sabah Berhad and LEAP (Land Empowerment Animals People)

• Kevin Low, Principal, Blunomy 

This session examined the potential of transforming organic waste into renewable energy, with a particular focus on Malaysia’s palm oil and agro-industrial sectors. The discussion explored how biogas production, anaerobic digestion and waste valorisation could contribute to Malaysia’s energy transition, industrial decarbonisation and circular bioeconomy, while creating opportunities to improve resource efficiency and reduce reliance on fossil fuels.

In his opening remarks, H.E. Michel Deelen highlighted the potential of biogas to convert organic waste into useful energy, drawing on European experience with discarded fruit, livestock manure and abattoir waste. He noted that biogas can provide electricity and cooking gas while reducing the environmental burden associated with waste disposal, but stressed that practical implementation requires attention to affordability and operational considerations. He also highlighted the value of Malaysia–Netherlands cooperation in developing practical and economically viable solutions for a circular economy.

Dr. Gary Theseira reinforced the role of biogas as a renewable, lower-carbon alternative to fossil fuels, particularly given the methane generated by Malaysia’s sewage systems, landfills and industrial activities. He highlighted the opportunity to capture and utilise methane rather than simply flare it, thereby creating additional energy value while reducing emissions. He also noted the growing use of biodigesters and specialised microorganisms to improve gas recovery, alongside the need for transition finance to support the expansion of Malaysia’s biogas industry.

In her keynote, Natalia Walczak, outlined Europe’s experience in developing biogas and biomethane markets, highlighting their contribution to three interconnected priorities: environmental sustainability, energy security and energy affordability. She noted that Europe has more than 22,000 biogas and biomethane plants and that biomethane production continues to grow as existing facilities are upgraded. Looking ahead, she highlighted significant potential for further expansion, supported by planned investment in new biomethane facilities across Europe.

Natalia emphasised that developing a successful biogas market requires a combination of policy, financing and infrastructure measures. European experience includes feed-in tariffs, premiums, mandates, quotas and tax incentives, alongside improved grid access and sustainable feedstock mobilisation. She also highlighted the growing use of biomethane as a substitute for natural gas in industrial and transport applications, supported by purchase agreements that provide greater certainty for producers and customers. Beyond energy generation, anaerobic digestion can support the circular bioeconomy by recovering digestate as an organic fertiliser and soil improver, reducing reliance on synthetic fertilisers and improving resource efficiency. 

The panel discussion, featuring Cynthia Ong and Kevin Low, focused on the Sabah Green Grid initiative and the potential for biomass and biogas from Sabah’s palm oil industry to support the state’s transition towards renewable energy. Preliminary findings from the initiative, which involves six organisations working with the Energy Commission of Sabah, indicate approximately 230–250 MW of potentially recoverable power from biomass and biogas. The discussion highlighted that some palm oil mills already generate surplus energy, while excess biogas is sometimes flared because of limited grid connections or the absence of viable markets. Kalabakan was highlighted as a potential example where surplus energy from a nearby palm oil mill could potentially support the town’s electricity needs through a local cable or mini-grid.

The session also examined the different opportunities presented by palm oil waste streams, including empty fruit bunches (EFB), palm kernel shells (PKS) and biogas. While some resources already have established uses and markets, others remain underutilised due to gaps in infrastructure, demand and commercial incentives. Malaysia’s existing energy system and fossil-fuel subsidies can further affect the competitiveness of renewable alternatives, underscoring the need for appropriate tariffs, financing mechanisms, regulatory frameworks and market incentives to support their uptake.

The panellists stressed that unlocking Sabah’s renewable energy potential will require a systems approach, rather than addressing individual palm oil mills in isolation. Accurate mill-level data will be important in determining actual recoverable energy, given differences in mill capacity, feedstock availability, existing energy use and proximity to grid infrastructure. The Sabah Green Grid consortium plans to engage palm oil companies, energy stakeholders, regulators, electricity providers and potential financiers to develop a practical roadmap, identify suitable locations for an initial implementation phase and establish the financing and regulatory conditions required for a successful proof of concept.

Overall, the session highlighted the significant potential of biogas and biomass to reduce emissions, strengthen energy security, support industrial decarbonisation and advance Malaysia’s circular bioeconomy. It also demonstrated how European experience in technology deployment, policy design, financing and market development could provide useful lessons for Malaysia, particularly as the country seeks to unlock the substantial renewable energy potential within its agricultural and agro-industrial waste streams.

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