Biofuel producer BAC Renewable Energy has entered into a deal to develop a biofuel storage facility and export hub at Tanjung Langsat Port in Johor, Malaysia.
Fossil LNG, created from fossil materials dug out of the ground, is nearly all methane and is about 80 times worse for the environment than CO2. Biomethane, however, converts methane that would be generated by the decomposition of feedstock such as agricultural and food waste into a renewable fuel that can be used to reduce the carbon footprint of ships that use LNG fuel systems.
BAC RE will serve as project developer, Dovechem as landowner and facility operator, and TLP Terminal — which is wholly owned by Johor state investment arm Johor Corp — as overall port operator.
The first phase of the project will be developing a bio-liquefied natural gas (BioLNG) storage capacity of 7,500 cubic metres and an annual production and handling capacity of 33,000 tonnes of BioLNG.
Subsequent phases of the development are projected to expand the facility’s total handling capacity to 350,000 tons of BioLNG annually. Phase 2 of the development will also include the storage and handling of biomethanol to expand the facility’s offerings.
The companies estimate that the potential biogas-to-BioLNG supply from palm oil waste across the region could reach 3.3 million tons annually.
The investment incentives provided in The Johor-Singapore Special Economic Zone (JS-SEZ) will act as an enabler to grow the biofuel industry, while the biofuel storage facility and export hub at Tanjung Langsat Port will act as the necessary infrastructure to connect the envisioned biofuel supply to the rest of the world, BAC RE director and shareholder Hasnoel Ramly said.
“It is projected to attract investments in green technology and engineering estimated between RM1.2 billion and RM1.5 billion. This project is not just about us, it is about unlocking new opportunities and creating a broader ecosystem [for biofuels],” he added.
