Petrochemical Decarbonisation Challenges: Biogas Investment, Renewable Naphtha, and Feedstock Limits

Malaysian petrochemical companies are struggling to cut emissions because many products rely on fossil raw materials. Ancom Nylex invested RM22 million in Green Lagoon Technology to offset its 34,000 tonnes of annual Scope 1 and 2 emissions via methane capture from palm oil mill effluent. The company also switched to natural gas, Euro 5 trucks, and LEDs, but notes absolute emissions may rise as the business grows. EcoCeres produces renewable naphtha from waste oils and animal fats, which can be used in existing petrochemical plants without major changes. However, demand outstrips supply because feedstock availability is limited, and used cooking oil prices have doubled. Both EcoCeres and FatHopes Energy stress traceability as essential, but no domestic blending mandate exists for renewable chemicals, unlike the proposed 1% SAF mandate for aviation.