HYCO1 Inc. and Malaysia LNG Sdn. Bhd. (MLNG), a subsidiary of PETRONAS, have signed a memorandum of understanding to explore the transformation of carbon dioxide into valuable chemical and fuel products. The agreement marks a major step toward advancing carbon capture and utilization (CCU) technologies while aligning with long-term sustainability goals.

The MOU was signed by Gregory Carr, CEO of Houston-based HYCO1, and Mohamed Syazwan Abdullah @ Laga Jenggi, managing director and CEO of Malaysia LNG Group of Companies. The initiative will be located in Bintulu, Sarawak, home to MLNG’s facilities and the source of the CO2 feedstock for the project.

Central to the collaboration is HYCO1’s proprietary CUBE technology. The innovation uses CO2 as a feedstock to produce industrial-grade synthesis gas, or syngas, in customizable blends of hydrogen and carbon monoxide. The process is designed to replace natural gas, reducing both costs and carbon intensity. Under the agreement, both parties will jointly conduct a feasibility study to assess the most efficient and sustainable approach to developing low-cost, low-carbon syngas for downstream applications.

“This is very exciting for all stakeholders, including HYCO1 and MLNG, and will benefit all Malaysians,” Carr said. “We are honored to support MLNG’s Net Zero Carbon Emissions aspirations by 2050. Our process and catalyst are game changers in decarbonization—not only do we prevent CO2 from being released, but we turn it into high-value, usable products.”

Unlike traditional carbon capture and sequestration (CCS) projects, which involve storing CO2 underground at high cost, this project focuses on carbon utilization. The HYCO1 process turns captured CO2 into profitable and competitive chemical products, creating economic value while reducing emissions. The syngas produced will have a lower carbon intensity than conventional "gray" syngas, typically derived from natural gas.

HYCO1 and MLNG anticipate the CCU facility will be completed by 2029. Once operational, the plant is expected to be one of the largest CO2 utilization sites in the world, setting new benchmarks for innovation, sustainability and industrial efficiency.

“This project demonstrates that achieving net-zero emissions profitably—and at scale—is not only possible, but a tremendous opportunity to drive innovation and economic growth,” the companies said in a joint statement.

HYCO1 is the world’s only CO2 utilization company that economically captures industrial CO2 emissions directly at the source and converts them into high-value, sustainable products—without relying on government incentives. Its breakthrough process delivers lower-cost results than conventional “gray” methods, transforming emissions into assets rather than liabilities.

HYCO1’s reformers are engineered to convert 100% of the CO2 feedstock into commercially valuable syngas, offering a transformative solution for industrial decarbonization. At the core of this innovation is the company’s proprietary CUBE™ Technology (Carbon Utilization. Best Efficiency.), which achieves near-total CO2 conversion in a single reactor pass. The result is low-cost, low-carbon-intensity syngas—comprised of hydrogen and carbon monoxide—produced at commercial scale.