Tech-driven carbon credits in Malaysia are tied to a biogas plant run on palm oil wastewater, credited to BCX.
Malaysia's Langkap Biogas Plant Leads the Way in Carbon Trading
The Langkap Biogas Plant, operated by Cenergi SEA, is making headlines in Malaysia's carbon trading landscape. On 18 June 2025, the plant successfully auctioned its Verra-verified carbon credits on Bursa Carbon Exchange (BCX), marking a significant milestone [1][2][3].
Located in Teluk Intan, Perak, the 1.6 MW Langkap Biogas Plant treats wastewater from palm oil processing (POME) to produce biogas for renewable energy. The project, which reduces methane emissions, a potent greenhouse gas, is certified by Verra, an international carbon credit standard body [2][3][4].
These carbon credits, generated from capturing methane and producing renewable energy, were among the pioneering carbon assets auctioned through BCX, Malaysia's first technology-driven carbon credits marketplace. The auction facilitates transparent and efficient trading of carbon offsets [1].
The Langkap Biogas Plant's carbon credits have already attracted a large multinational palm oil buyer, who purchased 10,103 units generated in 2024 [5]. This project is recognised as a flagship initiative by Cenergi SEA and marks a significant advancement in Malaysia's efforts towards net-zero emissions through renewable energy and carbon credit mechanisms [2][4].
Moreover, Monsoon Carbon is working on adding more biogas plants to the grouped project, including three more that are operated by Cenergi SEA. These new biogas plants, if constructed, must be located in Malaysia, not yet commissioned, and emit less than 60,000 tonnes of emissions per year, equivalent to about 600,000 tonnes of fresh fruit bunches processed annually [6].
Biogas plants are on Verra Carbon Standard's Positive List of Technologies, which means they do not need to demonstrate additionality via a detailed investment analysis [7]. This means the new biogas plants, if constructed, will be eligible for carbon credits auction on BCX.
BCX has waived all platform fees until 30 June 2025 to attract more traders to the exchange. In addition to the 2025 auction, an additional 10,448 units with the 2023 vintage are available for sale outside of the auction. An additional 15,171 units of the 2024 vintage will be available for sale in the first quarter of 2026 [8].
Revenue from the carbon credits will be used to fund the operation of the biogas plant, as well as innovation and community outreach. Stakeholder engagements were carried out before the biogas plant began its operations, involving representatives from the mill, local community, local authorities, regulators, and community members [9].
In 2024, the Langkap Biogas Plant reduced greenhouse gas emissions of the mill by approximately 25,000 tonnes of carbon dioxide and its equivalents (tCO2e). Some of the Langkap biogas project's credits have already sold for US$10, nearly five times the last traded price of global tech-based carbon credits already listed on BCX [10].
As the first technology-based carbon credits auction on BCX, the Langkap Biogas Plant's success sets a promising precedent for sustainable development and climate action within Malaysia.
[1] https://www.bursacarbon.com/ [2] https://www.cenergi.com.my/ [3] https://verra.org/ [4] https://monsooncarbon.com/ [5] https://www.bursacarbon.com/auctions/ [6] https://www.bursacarbon.com/guidelines/ [7] https://www.verra.org/standards/verra-carbon-standard/ [8] https://www.bursacarbon.com/pricing/ [9] https://www.bursacarbon.com/news/ [10] https://www.bursacarbon.com/market-data/
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