Renewable energy investments in SE Asia seen topping US$76b by 2025
21 Aug 2023
Southeast Asian national oil companies (NOCs) and traditional upstream players are progressively focusing on cleaner and more environmentally friendly energy initiatives with investments set to exceed US$76 billion (RM353.1 billion) from 2023 to 2025, according to Rystad Energy.
The independent energy research and business intelligence company headquartered in Oslo, Norway said the upward trend is set to continue, with a projected total outlay of US$119 billion by the end of 2027.
This expenditure will be driven by investments in wind, solar and geothermal projects.
“Regional NOCs like Indonesia’s Pertamina are expanding their participation in geothermal, while Malaysia’s Petronas aims to establish a notable presence in the carbon capture, utilisation and storage (CCUS) market.
“The Malaysian NOC announced ambitious plans to build the world’s largest dedicated facility by 2025, actively pursuing partnerships with international entities to unlock regional project potential,” senior supply chain analyst Afiqah Mohd Ali said in a statement.
She said when fully operational, the initiative would have the capacity to capture 3.3 million tonnes per annum (MTPA) of carbon dioxide (CO2) and securely store the collected CO2 within the reservoirs of the Sarawak region over its 25-year operational lifespan.
While the total project cost remains undisclosed, Rystad Energy’s estimates suggest it could reach US$260 million by 2025.
Similarly, Gentari, a wholly-owned subsidiary of Petronas, has made substantial investments in solar capabilities, seeking to harness the nation’s considerable renewable energy potential.
Between 2023 and 2026, Petronas will spend US$450 million on CCUS projects and US$330 million on hydrogen developments.