KUALA LUMPUR: Terengganu stands to benefit the most from Carbon Capture, Utilisation and Storage (CCUS) technology due to its existing facilities, says Datuk Seri Rafizi Ramli.
The Economy Minister said that heavy industries would flock to set up their factories in locations like Kerteh and Kemaman once a carbon tax is introduced by the government.
"Once the carbon tax is in place, companies will have to pay for carbon storage, increasing demand for carbon capture technology which already exists in Kerteh and Kuantan.
"So with CCUS, we can extend Kerteh's potential as an industry hub even after its gas and oil runs out in the future," he said in his winding-up speech for the Carbon Capture, Utilisation and Storage Bill 2025 on Thursday (March 6).
Rafizi also said that it was in the state's best interest to push the CCUS transition as soon as possible before its oil fields are depleted.
"Kerteh's petrochemical and oil industry is its biggest and largest employing industry but is running on limited time as its gas and oil have started to run low and will eventually deplete.
"We can transition the industry into new ones like CCUS that fuels the economy, creates job opportunities and tackles climate change at the same time," he said.
He added that further CCUS infrastructure could be developed by the private sector without government funding due to the business opportunities it provides.
The CCUS Bill 2025 was unanimously passed in the Dewan Rakyat via voice vote.
The Bill outlines the responsibilities of storage site operators in environmental protection, risk management and liability, to ensure safe, responsible and internationally compliant CCUS operations.
The Bill also proposes the establishment of a national CCUS governance structure that will oversee licensing, compliance, and industry development.
This will include a Steering Committee, Technical Committee and five Focus Groups, which will be led by the Economy Ministry and have representatives from various related ministries and stakeholders.
Rafizi also said that the government is currently looking to gazette the bill by the end of March this year once it is passed in the Dewan Negara.
