Strategic Integration of Carbon Capture, Utilisation and Storage (CCUS) Technologies in Malaysia: Leveraging Existing Infrastructure for Sustainable Decarbonisation

Carbon Capture, Utilisation and Storage (CCUS) technologies are essential to achieving Malaysia’s net-zero ambitions, particularly in hard-to-abate sectors such as power generation, petrochemicals, and heavy industry. This paper evaluates Malaysia’s strategic potential to integrate CCUS by leveraging its mature oil and gas infrastructure, regulatory momentum, and regional position. Post-combustion capture, coupled with storage in depleted reservoirs and enhanced oil recovery, emerges as the most practical pathway. The study synthesises global and national policy landscapes, cost structures, and technological readiness, while identifying challenges including high capital costs, limited regulatory frameworks, and low public awareness. It also explores opportunities for value-added CO2 utilisation and regional CO2 hubs. A tailored integration of capture, storage, and utilisation, underpinned by strong governance, investment, and cross-border collaboration, can transform Malaysia into a regional CCUS leader and accelerate Southeast Asia’s low-carbon transition.