Published on 6th January 2025
According to a prediction by TA Securities, Malaysia’s carbon capture technologies will garner over $10 billion in capital expenditures by 2030. This aligns with the government’s National Energy Transition Roadmap (NETR). The NETR aims to capture 40-80 million tons of carbon dioxide annually.
The firm’s analysis highlights the economic potential of carbon capture and storage (CCS) and carbon capture, utilization, and storage (CCUS) technologies in Malaysia.
The Demand for Carbon Capture Technologies
Recently, TA Securities prepared a report on the growth prospects for carbon capture solutions in Malaysia. According to the firm, the long-term economy and ecology for well-maintained projects contribute highly in the long run, though initial financial returns will be low.
Greenhouse gas emissions will be reduced through technologies such as CCS and CCUS. This will help Malaysia to reach the defined climate commitments.
Strategic Financing Models and Public-Private Partnerships
The development of CCTs in Malaysia will be driven by several factors. TA Securities noted that blended financing models and strategic public-private partnerships would be crucial for scaling these technologies.
The firm highlighted past projects, such as the Kasawari CCS project, which required an estimated investment of $1 billion. These models are expected to unlock the necessary capital for large-scale carbon capture initiatives in the future.
A Key Revenue Opportunity
Another important factor contributing to the success of CCTs is the development of a carbon trading market. TA Securities emphasized that monetizing captured carbon could create a significant revenue stream for Malaysia. This will enable Malaysia to position itself as a prominent player in the global carbon market.
Malaysia’s Geology Supports Carbon Capture Initiatives
Malaysia has favourable geological conditions which enables the capitalization of carbon capture technologies. The nation’s gas fields are well suited for CO2 storage as per research done by McKinsey and Company.
The fields in question have suitable structural integrity and offer opportunities to repurpose existing infrastructure. This makes these regions ideal for CCS and CCUS projects.
Policy Support for CCS and CCUS
The National Energy Transition Roadmap (NETR) and the New Industrial Master Plan (NIMP) 2030 of the Malaysian government provide a robust policy framework for developing CCS and CCUS. All these measures call for the embodiment of carbon capture technologies into national decarbonization strategies. By creating a supportive environment, such plans will spur investment and innovation in the sector.
TA Securities’ report highlights the enormous potential of carbon capture technologies in Malaysia. With favorable geological conditions, strategic financing models, and strong government support, Malaysia is poised to become a regional leader in CCS and CCUS. These technologies will help the country meet its climate goals. It will also help in opening new economic opportunities in the global carbon market.