Japan and Malaysia are nearing an agreement to store carbon dioxide underground. The plan is to transport liquefied carbon dioxide from Japan to Malaysia. It will be stored in depleted offshore gas fields starting in 2030 or later.
Mitsui & Co., Kansai Electric Power, and Petronas are key players in this project. The goal is to inject the carbon dioxide into large offshore gas fields once they are empty. This effort is part of a strategy to reduce greenhouse gas emissions.
It also aims to lessen the effects of climate change. Carbon capture and storage (CCS) is an important technology for achieving global carbon reduction targets. The financial details and specific timelines are still being negotiated.
However, this partnership is a significant step towards innovative environmental solutions in the region. Solarvest Holdings Berhad, Shizen Malaysia Sdn Bhd, and HSS Engineering Sdn Bhd have received approval for the Green Investment Tax Allowance (GITA). This is for their utility-scale solar project in Kedah.
The announcement was made during the MITI Week at the Expo 2025 in Osaka, Japan. The 29.99MWac solar photovoltaic project is jointly owned by Shizen Malaysia (49%), Solarvest Asset Management (33%), and HSS Engineering (18%).
Japan carbon storage agreement progresses
The GITA incentive is part of a Malaysian government initiative to encourage investments in green technology. Davis Chong Chun Shiong, executive director and group CEO of Solarvest, said, “We are honoured to receive the GITA approval from MIDA, which underscores the government’s confidence in our capabilities and commitment to clean energy. This incentive boosts the financial sustainability of the SM01 project and demonstrates the value of international collaboration, particularly with our esteemed Japanese partner, Shizen.”
This development is a significant step forward in Malaysia’s renewable energy sector.
It highlights the country’s commitment to sustainable development and international partnerships. Joint ventures in new energy transition and sustainability projects in Malaysia will become model examples for the rest of Asia and beyond. This is according to Noriyuki Shikata, the Japanese Ambassador to Malaysia.
Shikata stated that various new decarbonisation cooperation projects are emerging in Malaysia. This is in line with the goal of achieving carbon neutrality. “At the Japan-Malaysia summit meeting in January, Prime Minister Datuk Seri Anwar Ibrahim and his Japanese counterpart Shigeru Ishiba expressed their intention to further promote carbon capture, utilization and storage (CCUS), as well as the use of hydrogen and ammonia as alternative fuels,” he said.
Both leaders confirmed that Japan and Malaysia will co-host the Asia Zero Emission Community (AZEC) summit and ministerial meetings in Malaysia later this year. This coincides with Malaysia’s chairmanship of ASEAN this year. “Japan has historically been one of the largest investors in Malaysia, with Japan’s total direct investment exceeding RM100 billion in 2024,” Shikata noted.
He also expressed gratitude to the Malaysian government for its proactive and innovative participation in the Osaka-Kansai Expo. Meanwhile, JACTIM president Hiromitsu Narukama reaffirmed the chamber’s commitment to Malaysia’s economic development. “We intend to actively utilize this office space to facilitate communication, exchanges, and opportunities for networking and collaboration,” he said in his opening address.
Image Credits: Photo by David Edelstein on Unsplash
April Isaacs is a news contributor for DevX.com She is long-term, self-proclaimed nerd. She loves all things tech and computers and still has her first Dreamcast system. It is lovingly named Joni, after Joni Mitchell.
