KUALA LUMPUR, Citaglobal Bhd has signed a joint development agreement with Keppel Decarb (Malaysia) Sdn Bhd to develop bio-compressed natural gas (bio-CNG) projects across Pahang, Kelantan, and Terengganu.
In a filing with Bursa Malaysia, Citaglobal said the collaboration aims to convert biomethane, palm oil mill effluent, and agricultural waste into bio-CNG, which will serve as a clean energy source. Part of the output will be supplied to the upcoming Citaglobal Bioenergy & Green Eco Park — a key feature of the company’s planned 247-acre industrial park in Gebeng, Pahang.
The two-year agreement will see Citaglobal’s subsidiary, Citaglobal Bioenergy Sdn Bhd, oversee the supply of scrubbed biogas, the development of a biogas capture facility, and the necessary regulatory and land approvals. Keppel will focus on sustainability compliance, traceability, and technical support.
Both companies may also establish a special purpose vehicle, in which Citaglobal Bioenergy will hold a majority stake, to manage the project’s financing, construction, and operations once feasibility assessments are completed.
Citaglobal executive chairman and president Tan Sri Dr Mohamad Norza Zakaria said the partnership marks a significant step in expanding Citaglobal’s leadership in Malaysia’s renewable energy sector.
The project remains subject to relevant regulatory and land approvals. Citaglobal’s shares closed one sen higher at 81 sen, valuing the company at RM345 million.
