Malaysia-Singapore Biofuels Hub to Boost USD 337 Million in Green Investments

Mar 2025

A biofuels hub specializing in Bio-Liquefied Natural Gas (bio-LNG) is set to be developed in the Johor-Singapore Special Economic Zone (JS-SEZ). The hub’s planned processing capacity is 350,000 tons annually, and it is expected to attract USD 337 million (MYR 1.5 billion) in green investments.

Malaysia’s BAC Renewable Energy (BAC RE), Singapore-based Dovechem Group, and Tanjung Langsat Port Terminal (TLP Terminal) signed a memorandum of understanding (MOU) on February 6 to establish the “BAC RE ASEAN Biofuels Storage and Exporting Hub.” BAC RE will oversee development, Dovechem Group will provide land and manage operations, and TLP Terminal, a subsidiary of Johor Corporation, will handle port activities.

The project will be executed in two phases, starting with an annual Bio-LNG capacity of 33,000 tons and 7,500 cubic meters of storage. The second phase will expand the facility’s services to include Bio-Methanol storage and processing.

Leveraging Malaysia’s palm oil bio-waste, the hub will supply up to 3.3 million tons of biofuels annually. Its strategic location near the Malacca Strait and Singapore enhances its role in advancing biofuel adoption for shipping.

Malaysia’s Invest Malaysia Facilitation Centre Johor (IMFC-J) and the Johor Super Lane project aim to accelerate approvals for biofuel investments, positioning the hub as a key player in regional decarbonization efforts.

(Source: Reccessary News, Southeast Asia Infrastructure)

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