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Turning waste into watts: How biogas is powering Malaysia’s climate future

Sathesh Raj 29/06/2025 | 05:00 MYT
Dindings Farms Biogas Plant. - Photo: Tang/FLFAM
FROM afar, it looks like a dark, dome-shaped igloo — or maybe a croissant-shaped spacecraft — planted between rows of palm trees and dense forest. The structure stands out against the rural landscape, a quiet yet promising symbol of Malaysia’s shift toward renewable energy.

But this isn’t alien technology. It’s a biogas plant. And this isn’t science fiction — it’s science in action.

On the outskirts of Segari, Perak, Dindings Farms Sdn Bhd has been quietly tackling pollution, energy costs, and emissions for over a decade. The farm was among Malaysia’s earliest adopters of biogas technology in the livestock sector, converting pig waste into renewable electricity.

“We’ve been doing this for more than 10 years,” says Dindings Farms manager Yeong who has been working there since 2004. “It helps us manage our waste, cut our electricity bills, and reduce our emissions. With rising energy costs, we’re planning to do even more.”

Installed in 2011 at RM4 million, the plant generates up to 500 kilowatts of power — enough to run the entire operation — while saving around RM35,000 per month on electricity.

Dindings Farms has been managing a key environmental burden: animal waste that threatens nearby waterways.

The science: Anaerobic digestion explained

Biogas is a renewable fuel made mostly of methane (CH₄), a flammable gas released when organic waste breaks down without oxygen. Capturing and burning it can generate electricity or heat, much like natural gas, but without extracting fossil fuels.

This process, called anaerobic digestion, happens inside sealed tanks known as biodigesters. Think of it as a giant stomach, where natural microbes “eat” waste like manure, food scraps, or palm oil sludge and produce energy in the form of gas. What’s left behind is digestate — a nutrient-rich slurry that can be used as fertiliser.

“It’s a triple win,” says chartered chemical engineer Hong Wai Onn. “You manage waste, produce clean energy, and return nutrients to the soil.”

Wastewater treatment plant at Kampung Selamat - Tang/FLFAM


Kampung Selamat: A community hopes for change

In Kampung Selamat, Penang, pig farmers are hoping new technology will help them clean up long-standing waste issues — and possibly generate energy in the future. For decades, farms here have managed pig waste using traditional earthen ponds located within each farm compound.

But growing environmental concerns, particularly over water pollution, have pushed the community toward a shared solution. Under a state-led initiative, a company called HRB Q Tech Sdn Bhd has been appointed to manage farm effluent. So far, two farms have installed a treatment system known as Quantum Thermal Pyrolysis Cracking (an advanced method that breaks down organic waste at high temperatures without oxygen).

“We hope this system can solve the pollution problem in Kampung Selamat,” said Tang, a pig farmer part of the Federation of Livestock Farmers' Associations of Malaysia (FLFAM). “The cost is not cheap, but what matters is the outcome.”

The treated water is monitored daily by the Department of Veterinary Services (DVS) in Penang to evaluate its effectiveness. If proven successful, this model could become a blueprint for other farming communities grappling with environmental compliance and waste management.
While this system is currently focused on environmental protection, farmers are open to the possibility that technologies like biogas digesters could one day complement their operations, helping not just to treat waste, but also to generate renewable energy and reduce reliance on the grid.

What’s holding biogas back?

Malaysia’s biogas journey is one of immense potential and persistent barriers. In the palm oil sector, for example, fluctuations in palm oil mill effluent (POME) supply, which follow harvesting cycles, make it difficult to maintain stable biogas production. Smaller farms, particularly pig or cattle operations, often lack the scale or capital investment needed to make biogas systems financially viable.

Policy uncertainty compounds these issues. The national Feed-in Tariff (FiT) scheme — designed to pay producers for renewable electricity supplied to the grid — has seen inconsistent implementation, with variable tariff rates and competitive bidding introduced in 2017. Additionally, under current carbon market rules, credits are granted for methane capture but not for the renewable electricity generated from biogas, limiting financial incentives.

Still, there are signs of innovation. A palm oil mill in Sabah has successfully upgraded its biogas into bio-compressed natural gas (bio-CNG) to fuel its transport fleet, reducing reliance on diesel. Other projects are exploring cluster-based biogas hubs, where multiple farms or mills combine resources to share infrastructure and scale more efficiently.

Experts argue that policy and regulatory reforms are key. “The technology works,” says Hong, who is also a Fellow of the Institution of Chemical Engineers, the Royal Society of Chemistry, and the Malaysian Institute of Management. “What’s needed now is stable policy, better access to the grid, predictable tariffs, and carbon credits that reward both methane capture and energy production.”

The policy gap on methane

Malaysia’s pledge to reduce methane emissions by 30% by 2030 under the Global Methane Pledge (GMP) was a bold step, but actual implementation has lagged behind. A recent policy brief by Universiti Malaya, supported by CERAH and the Environmental Defense Fund, highlights the need for a clear national strategy.

According to the brief, Associate Professor of Environmental Politics at Universiti Malaya Dr. Helena Varkkey, said that Malaysia lacks a dedicated methane policy and that existing sector-specific regulations are either vague or inaccessible.

She and her team recommend integrating methane governance into the broader climate policy framework, especially as Malaysia updates its National Climate Change Policy and drafts a Climate Change Act.

The brief also points to a lack of transparency and public awareness. A survey conducted by Dr. Varkkey’s team found that 58% of Malaysians were unaware of methane as a greenhouse gas, despite its significant role in global warming and contribution to air pollution.

As the brief notes, methane is linked to the formation of ground-level ozone, which causes around 500,000 premature deaths globally each year.

By connecting methane reduction to public health and air quality benefits, and by strengthening corporate and civil society engagement, the brief argues that Malaysia could unlock both environmental and economic gains.

Biogas-powered generators at Dindings Farms - Tang/FLFAM


The way forward

From the early adopters at Dindings Farms, who have been steadily powering their operations with biogas for over a decade, to the community-driven effort in Kampung Selamat, Malaysia’s rural farming sector is proving that climate action and agricultural resilience can go hand in hand.

What’s needed next is clear: sustained policy support, financing mechanisms for smallholders, and public-private collaboration to scale successful models.

Malaysia already has the waste, from palm oil effluent, livestock manure, and food scraps — and the technology. With the right investments and incentives, much of what is currently flared, dumped, or left to rot could instead power homes, reduce emissions, and support livelihoods.

“Biogas isn’t a silver bullet,” adds Hong. “But it’s rare to find a solution that addresses waste, energy, and climate — all at once.”

And in a country racing toward its net-zero ambitions, the promise of rural biogas offers a hopeful path forward — not through megaprojects, but one biodigester, one farm at a time.





This story was produced as part of the PANAS! Climate Change Stories in Malaysia initiative by Science Media Centre Malaysia, with support from the International Science Council Regional Focal Point for Asia and the Pacific, funded by the Australian Department of Industry, Science and Resources and led by the Australian Academy of Science, and from the International Network for Governmental Science Advice Asia (INGSA-Asia), funded by the Québec government and the Fonds de Recherche du Québec.







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