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What is Biogas Upgrading?
Biogas is methane-rich gas which is produced from the decomposition of organic matter such as biomass, manure, palm oil effluent, and tapioca effluent. The biogas is then filtered to reduce impurities such as carbon dioxide, hyrdogen sulphide, siloxanes and volatile organic carbons, moisture, and particulates.
Biogas upgrading is the process of cleaning and transforming this raw biogas into either compressed biomethane or liquefied BioLNG (Biomethane Liquefied Natural Gas). Compressed biomethane is created by compressing the cleaned biogas, typically to very high pressures, around 200 atmospheres. BioLNG, on the other hand, is made by cooling the biomethane until it turns into a liquid. [1]
What is the benefit of Compressed biomethane and BioLNG?
Both compressed and liquified biomethane serves similar purposes in various industries. They can be stored and used locally or transported to distributors, just like natural gas. Think of them as a green alternative to fossil fuels. They can power vehicles, generate electricity, and replace fossil fuels in industrial processes. [1] Biomethane can also generate what are known as carbon credits, a mechanism that enables stakeholders to displace their use of fossil fuels and help to reduce their carbon footprint
source : Freepik
The Carbon Credit Market in Malaysia
Since 1988, the Malaysian government has demonstrated its commitment to addressing climate change, aligning with both global and national initiatives. Malaysia is currently dedicated to achieving the goals of the Paris Agreement, which aims to limit global warming and mitigate the effects of climate change. A key part of this commitment involves reducing greenhouse gas emissions. (GHG). [2, 3]
Figure 1 VCM Handbook © Bursa Malaysia & MGTC 2023 (https://bcx.bursamalaysia.com/bcx/VCM_Handbook.pdf)
To achieve these reductions, Malaysia has developed various strategies, including creating roadmaps and policy frameworks for different sectors like local government, transportation, and industry, as well as providing financial support for green initiatives. One form of financial support is the establishment of a Voluntary Carbon Market (VCM). The Bursa Carbon Exchange (BCX), launched by Bursa Malaysia, provides a platform for companies, organizations, and even individuals to buy and sell carbon credits. This allows them to offset their carbon footprint and contribute to emission reduction efforts. [3]
A wide range of industries in Malaysia are already participating in carbon trading, both buying and selling credits. Examples of projects generating carbon credits include:
- Rainforest restoration project, by Kuamut Rainforest Conservation Project [4]
- Biogas project, by Grouped project [5]
- Biochar project, by carbon plus [6]
How Biogas Upgrading Supports Carbon Credit Markets
Can biogas projects participate in the carbon credit market? Absolutely.
Research has shown that a typical palm oil mill, for instance, can emit significant amounts of CH4 and CO2 from the wastewater pond of 261.93 and 595.99 g/m3/day, respectively, equivalent to 48.572 t CO2-eq/day or 14,571.5 t CO2-eq/year. [7]
Industries can significantly reduce these emissions by converting their waste into energy through processes like biogas production. Biogas generation is a very efficient way to capture methane that would otherwise be released into the atmosphere, and then use it to power operations, generate electricity, and potentially for further biogas upgrade such as compressed biomethane and BioLNG.
Industries that successfully reduce their emissions through such projects can then become carbon credit sellers, provided their projects meet all the necessary requirements and standards. Biogas upgrading projects is categorized as technology-based solutions that address renewable energy, waste handling, and carbon capture and storage. As of 2023, there are already biogas plants in Malaysia registered with the Verified Carbon Standard, a recognized carbon credit standard [3].
Challenges and future outlook
Registering biogas upgrading projects for carbon credit in Malaysia face several challenges [3]:
- Financial: Upgrading biogas is expensive to maintain, funding is hard to get (especially for smaller projects), and carbon credit prices change a lot, making it hard to predict income.
- Technical: Biogas is corrosive and wears down equipment quickly. Biogas production changes with the seasons, making supply unreliable. Equipment also requires regular maintenance to ensure correct functioning over the lifetime of the project.
- Regulatory: There are no clear rules for the generation and measurement of carbon credits, a feature that makes projects hard to get approved. The rules also keep changing, making people hesitant to invest.
- Market: Limited awareness of biogas upgrading and carbon credits. Bad press about carbon credits makes people less trusting. The voluntary and compliance carbon markets don’t work together well, which hurts demand.
POME to Biogas Project, East Kalimantan, Indonesia
To address these issues, efforts are underway to simplify and clarify the voluntary carbon market (VCM). This helps everyone better understand carbon finance and its role in fighting climate change. Improved transparency and simpler processes aim to create a more effective and inclusive VCM.
While carbon credits can help to fund emissions reductions, their trustworthiness is still remains a concern. This has resulted in claims that they are little more than ‘greenwashing’, and much work must be undertaken to prove their effectiveness as a secure and reilable method of long-term emissions reduction. The ICVCM is working to fix this by setting strict rules (Core Carbon Principles) and a framework to ensure carbon credits actually reduce emissions, boosting confidence in the market.
Conclusion
Biogas upgrading, converting biogas to biomethane, allows Malaysian industries to generate and sell carbon credits by reducing emissions from organic waste. While biogas projects are eligible, challenges remain, including financial burdens, technical difficulties, regulatory complexities, and limited market awareness. Efforts to simplify the VCM and establish robust standards aim to overcome these obstacles, enabling biogas upgrading to contribute significantly to Malaysia’s climate goals.
Contact Us
For more information on biogas technology and how it can benefit your organization, contact our sustainable energy consulting team today. Embrace green innovation and transform your waste management strategy with cutting-edge biogas solutions.
Raja Badrulhisham
sham@organics.co.uk | +60135287139
REFERENCE
[1] Organics Group, COMPRESSED BIO-METHANE: The use of compressed bio-methane from biogas as a fuel, vol. DATA SHEET ODSR17, Organics Group, 2024.
[2] M. Mail, “https://www.malaymail.com/,” 22 January 2025. [Online]. Available: https://www.malaymail.com/news/malaysia/2025/01/22/despite-us-pullout-pm-anwar-says-malaysia-still-all-in-on-paris-agreement/164267. [Accessed 16 February 2025].
[3] B. M. &. MGTC, VCM Handbook, Kuala Lumpur: Bursa Malaysia Berhad, 2023.
[4] B.-E. ASIA, “www.bimp-eaga.asia/,” 27 September 2024. [Online]. Available: https://bimp-eaga.asia/article/kuamut-rainforest-malaysias-first-certified-nature-based-carbon-project. [Accessed 16 February 2025].
[5] Monsoon Carbon, “www.monsooncarbon.com,” 29 March 2024. [Online]. Available: https://monsooncarbon.com/monsoon-carbon-registers-first-vcs-grouped-project-in-malaysia/.
[6] S. S, “www.carboncredits.com,” 11 October 2024. [Online]. Available: https://carboncredits.com/malaysias-first-industrial-biochar-facility-carbon-plus-partners-with-crystaltrade-for-carbon-removal-optimization/.
[7] l. h. Putro, “Emissions of CH4 and CO2 from Wastewater of Palm Oil Mills: A Real Contribution to Increase the Greenhouse Gas and Its Potential as Renewable Energy Sources,” Environment and Natural Resources Journal, vol. 20, 2022.