Malaysia’s Green Energy Push: Biofuel Export Hub Set for 2027 Launch

BAC Renewable Energy Sdn Bhd (BAC RE) has signed an agreement to develop a major biofuel storage and export hub at Tanjung Langsat Port in Johor, marking a significant milestone for Malaysia’s green energy ambitions.

The project, named the BAC RE ASEAN Biofuels Storage and Exporting Hub, is a collaboration between BAC RE, Singapore-based bulk liquid storage provider Dovechem Group, and TLP Terminal Sdn Bhd, the port operator wholly owned by Johor Corp.

Phase 1, estimated at RM150 million (SGD 41.8 million), will include an initial Bio-Liquefied Natural Gas (BioLNG) storage capacity of 7,500 cubic metres, with an annual production and handling capacity of 33,000 tonnes. Future expansion will increase total handling capacity to 350,000 tonnes annually, including biomethanol storage. The first ship-to-ship (STS) biofuel refueling is expected by 2027, positioning Johor as a key biofuel hub in the ASEAN region.

BAC RE, along with its partners, Dovechem Group and TLP Terminal, has signed a memorandum of agreement (MoA) to establish the ASEAN Biofuels Storage and Exporting Hub at Tanjung Langsat Port.

• BAC RE will oversee project development

• Dovechem Group will act as landowner and facility operator

• TLP Terminal will serve as the port’s overall operator

Johor was chosen for its strategic location near the Straits of Malacca and Singapore, the world’s busiest bunkering port.

Speaking on the project, BAC RE Director Hasnoel Ramly stated: “This hub is not just about storage—it will be a game-changer in connecting ASEAN’s biofuel supply to global markets.”

The first phase of the development will focus on BioLNG storage and handling, including:

• 7,500 cubic metres of BioLNG storage capacity

• Annual production and handling of 33,000 tonnes of BioLNG

• Investment of RM150 million (SGD 41.8 million)

Phase 1 is already financially secured, with BAC RE confirming that necessary funding has been arranged. However, specific financial backers have not been disclosed. “We anticipate our first ship-to-ship refueling by 2027, providing sustainable fuel solutions for maritime operations,” said Hasnoel.

The subsequent development phases aim to increase the facility’s handling capacity to 350,000 tonnes annually, allowing for:

• Expansion into biomethanol storage and handling

• Integration of biofuel technologies across multiple industries

• Scaling up Malaysia’s biofuel export capabilities

According to BAC RE, the potential biogas-to-BioLNG supply from palm oil waste in the region could reach 3.3 million tonnes annually.

“We are unlocking new opportunities for green energy in ASEAN, ensuring our infrastructure supports global sustainability goals,” Hasnoel added.

Tanjung Langsat Port is one of three key ports within the Johor-Singapore Special Economic Zone (JSSEZ), which provides investment incentives for green energy projects.

• JSSEZ will attract investments in biofuel technology and engineering

• Projected green technology investments range from RM1.2 billion to RM1.5 billion (SGD 335 million – SGD 418 million)

• The hub will enhance ASEAN’s sustainable fuel infrastructure Speaking at the signing ceremony, European Delegation to Malaysia Deputy Head Timo Goosmann emphasized:

“This project aligns with the European Union’s decarbonization goals and supports global sustainability initiatives.”

The Tanjung Langsat biofuel hub is part of broader efforts to develop cleaner energy solutions for the maritime sector, a key contributor to global carbon emissions. The hub aims to:

• Promote the adoption of BioLNG and biomethanol in shipping

• Reduce carbon emissions in regional supply chains

• Provide a sustainable alternative to conventional marine fuels

BAC RE already operates several biogas and biomass facilities across Malaysia, including in Perak, Terengganu, Pahang, and Johor.

The development of the BAC RE ASEAN Biofuels Storage and Exporting Hub will significantly impact the renewable energy landscape in Southeast Asia, with Singapore and Johor at the center of this transformation. For Singapore, this project presents: A more sustainable fuel option for maritime and logistics sectors Increased biofuel supply supporting regional decarbonization efforts Greater cross-border investment in green energy infrastructure With an initial investment of RM150 million (SGD 41.8 million) and future projections reaching RM1.5 billion (SGD 418 million), Malaysia is positioning itself as a key player in the global shift towards sustainable energy.

Sources: The Edge Malaysia, Quantum Commodity Intelligence (2025)

Keywords: Biofuel Hub Johor, BAC RE Biofuel, ASEAN Renewable Energy, Tanjung Langsat Port Expansion, Malaysia Green Economy, BioLNG Infrastructure, Biomethanol Storage, Sustainable Maritime Fuel, Clean Energy Investments, Malaysia-Singapore Economic Zone