SHAH ALAM, 1 NOVEMBER 2024 – Gas Malaysia Energy and Services (GMES), a subsidiary of Gas Malaysia Berhad (Gas Malaysia), and Intercontinental Specialty Fats (ISF) have come together to formalise a Supplemental Gas Supply Agreement (GSA) for the supply of certified biomethane through the Natural Gas Distribution System (NGDS). This agreement reinforces both companies’ commitment to sustainability and renewable energy in the industrial sector.
The biomethane supplied to ISF will be certified under the International Sustainability and Carbon Certification (ISCC) PLUS standard. This globally recognised certification ensures that the biomethane supplied by GMES adheres to renewable and sustainability criteria, reinforcing the company’s commitment towards environmentally responsible practices. This effort highlights GMES and ISF’s commitment to deliver sustainable energy solutions that aligns well with Malaysia’s National Energy Transition Roadmap (NETR) targets, which is to reduce greenhouse gas emissions and achieve net-zero emissions by 2050.
The Chief Executive Officer of GMES, En. Mohamad Farid Ghazali and Chief Executive Officer of ISF, Mr. Toshio Fujimori formalised the Supplemental GSA as signatories, jointly witnessed by Gas Malaysia’s President & Group Chief Executive Officer, En. Ahmad Hashimi Abdul Manap and ISF’s Chief Marketing Officer, Ms. Khoo Yoke Lian.
Gas Malaysia Green Ventures Sdn Bhd (GMGV), another wholly owned subsidiary of Gas Malaysia Berhad, is entrusted in ensuring compliance with the ISCC PLUS certification, which validates the biomethane as a renewable and sustainable product. Additionally, GMGV shall oversee that the biomethane meets the similar specification as natural gas before it is injected into the NGDS, maintaining both quality and sustainability standards. GMGV has established itself as a pioneer in the nation by sourcing certified biomethane from Palm Oil Mill Effluent (POME).
Since 2005, ISF has been a valued customer to GMES, relying on natural gas as the fuel of choice. As part of The Nisshin OilliO Group, Ltd., ISF has embarked on a new strategic venture into biomethane to facilitate its transition towards renewable energy solutions, aligning with its broader sustainability objectives. This strategic shift reduces ISF’s carbon emission and helps ISF meet its Environmental, Social, and Governance (ESG) targets. Notably, ISF is the first customer to receive certified biomethane delivered through the NGDS.
Speaking at the signing ceremony, En. Ahmad Hashimi Abdul Manap, President & Group Chief Executive Officer of Gas Malaysia Berhad, stated, “This business relationship represents a significant step towards advancing renewable energy adoption in industries traditionally dependent on fossil fuels. The biomethane generated through this initiative is sourced from POME, thereby contributing to a circular economy model. By treating waste into a viable energy source, we aim to address waste related environmental challenges and facilitate the transition from conventional energy sources to greener alternatives, in alignment with the nation’s broader sustainability objectives.”
Addressing the importance of collective effort, the Chief Executive Officer of ISF, Mr. Toshio Fujimori stated, “This partnership between GMES and ISF establishes a new benchmark for industry collaboration in driving sustainable growth. Our joint efforts are focused on creating value for a greener future and supporting Malaysia’s aspiration of achieving net-zero emissions by 2050.”
The signing ceremony augurs well with Gas Malaysia’s 10-year strategic business plan, known as GM32, designed to elevate the company’s growth trajectory while reinforcing its commitment to advancing the nation’s energy transition agenda.
Through GM32, Gas Malaysia has been looking at adjacencies along the gas value chain for new opportunities. This includes harnessing biomethane as a renewable energy source to help mitigate greenhouse gas emissions and promote the efficient utilisation of organic waste resources.
“In an effort to support the industry’s shift towards sustainability and the rising demand for greener alternatives like biomethane, many business establishments and customers are placing greater emphasis on sustainable practices. This agreement strategically positions GMES and GMGV to leverage on this opportunity, by providing customers with a viable solution to reduce their environmental impact,” En Ahmad Hashimi elaborated.
“Building alliances with organisations that share similar values such is imperative for achieving sustainable growth. Our business relationship with Intercontinental Specialty Fats is rooted in our unwavering optimism in the future of renewable energy. With over three decades of experience, we remain optimistic in our ability to lead the transition to a greener future while delivering exceptional value to our customers and stakeholders,” En Ahmad Hashimi concluded.
