Malaysia has stepped into a new era of climate action by advancing Malaysia Carbon Capture Projects through bold policies and major investments. The government and energy firms are now serious about cutting emissions and enabling a low-carbon future.
In March 2025, Malaysia passed a dedicated CCUS Act, giving legal structure to carbon capture, utilization, and storage efforts. This law supports innovation, ensures regulatory clarity, and signals that CCUS is central to Malaysia’s goal of net-zero emissions by 2050. The national roadmap now sets clear steps for integrating CCUS into the country’s decarbonization plans.
The country’s updated Nationally Determined Contribution (NDC) states a targeted 45 % reduction in carbon intensity (per GDP) by 2030, compared to 2005 levels. In that plan, CCUS is not just a technical trick but a key enabler to meet these climate goals. With the CCUS Act and the NDC together, Malaysia positions itself among the more serious adopters of carbon capture in Southeast Asia.
Malaysia Carbon Capture Projects Lead with Kasawari CCS
One of the most tangible examples of Malaysia’s climate ambition is the Kasawari CCS Project. Operated by PETRONAS, this project aims to capture up to 3.3 million tonnes of CO₂ per year from natural gas operations. This scale would make it one of the largest offshore carbon capture projects in Malaysia. The capital investment is about MYR 4.5 billion (roughly USD 1 billion). The project is expected to come online in 2026 and begins reducing emissions from one of Malaysia’s core energy sectors.
The oil and gas sector dominates Malaysia’s energy supply (making up 96.6 % of it). As of 2022, emissions from energy use reached 291 million tonnes of CO₂. These numbers show that decarbonizing oil and gas is not optional — it is vital. By deploying CCUS in this sector, Malaysia can begin to cut deeply into its core emissions.
International partnerships also play a role. PETRONAS is collaborating with Shell and other global energy firms to deploy CCS technologies at commercial scale. These partnerships bring technical expertise, financing capability, and global best practices into Malaysia Carbon Capture Projects.
Beyond Kasawari, Malaysia envisions a hub model for CCUS. The plan calls for three CCUS hubs by 2030, each sharing storage infrastructure. These hubs aim for a combined capture-and-storage capacity of up to 15 million tonnes per annum (Mtpa) by 2030. Looking further ahead, Malaysia hopes to scale to 40–80 Mtpa by 2050, bearing in mind its large storage potential.
Speaking of storage potential, Malaysia’s geology provides strong support. The country is estimated to hold over 150 gigatonnes of CO₂ storage potential. That includes 13.3 Gt from depleted oil and gas reservoirs and 140 Gt from saline aquifers. These vast capacities give Malaysia room to store captured CO₂ for decades, possibly centuries, helping to anchor CCUS as a lasting solution.
Beyond climate targets, Malaysia expects CCUS to drive economic growth. Projections suggest that by 2050, CCUS development could add USD 250 billion in value and produce 250,000 jobs across industries. This connects climate action with livelihoods, investment, and industrial upgrading.
In short, Malaysia Carbon Capture Projects are moving from concept toward reality. The Kasawari project sets a benchmark. The CCUS Act and NDC provide the policy foundation. The storage potential offers long runway. And the economic case gives broad social support. If deployment succeeds and hubs scale up, Malaysia could become a CCUS leader in the ASEAN region.
Read also: Malaysia’s Green Hydrogen Push: Powering the Next Energy Era
