KUALA LUMPUR: Gas Malaysia Bhd's subsidiary Gas Malaysia Energy and Services (GMES) and Intercontinental Specialty Fats (ISF) have signed an agreement for the supply of certified biomethane through the natural gas distribution system (NGDS).
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.
GMES chief executive officer (CEO) Mohamad Farid Ghazali and ISF CEO Toshio Fujimori signed the deal, which was witnessed by Gas Malaysia president and group CEO Ahmad Hashimi Abdul Manap and ISF chief marketing officer Khoo Yoke Lian.
"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 palm oil mill effluent (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," said Ahmad Hashimi.
Gas Malaysia Green Ventures Sdn Bhd (GMGV), another wholly-owned subsidiary of Gas Malaysia, will ensure compliance with the ISCC Plus certification, which validates the biomethane as a renewable and sustainable product.
GMGV has established itself as a pioneer in the nation by sourcing certified biomethane from Pome.
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 shift reduces ISF's carbon emission and helps the company meet its environmental, social and governance targets.
"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," added Ahmad Hashimi.