Gas Malaysia Launches Asia Pacific’s First LOOP System To Convert Methane Into Graphene And Hydrogen-Rich Gas

KUALA LUMPUR,June, 2026 – Gas Malaysia Bhd has deployed the first LOOP system in the Asia Pacific region, marking a major step in Malaysia’s push to develop advanced materials, cleaner industrial applications and higher-value uses for existing gas infrastructure.

The system uses technology developed by United Kingdom-based Levidian Nanosystems Ltd to convert methane into high-quality graphene and hydrogen-rich gas, while also capturing carbon from methane. The deployment was announced during the launch of the initiative titled “From Methane to Graphene: Revolutionising Industry with Graphene” in Kuala Lumpur.

The breakthrough positions Gas Malaysia beyond its traditional role as a gas distributor. Under its GM32 growth strategy, the company is moving towards becoming a provider of high-value solutions and an ecosystem builder in the advanced materials sector.

Levidian’s LOOP technology works by splitting methane into solid carbon, in the form of graphene, and a hydrogen-rich gas blend. According to Levidian, the system uses microwave plasma technology to process methane from various sources and produce graphene alongside a cleaner fuel stream that can either be used as lower-carbon fuel or purified into hydrogen.

This makes the technology important for industries seeking to reduce emissions while creating commercially valuable materials. Methane is often viewed as a fuel or an emissions concern, but with this system, it can be co

Science, Technology and Innovation Minister Datuk Chang Lih Kang said the collaboration between Malaysia and the UK, through Gas Malaysia and Levidian, would complement the work already being carried out by NanoMalaysia Bhd to strengthen the national advanced materials ecosystem.

Chang said the deployment of Levidian’s LOOP technology in Malaysia, its first installation in Asia Pacific, reflects growing international confidence in Malaysia’s industrial ecosystem. He added that new graphene production technologies can complement existing graphene production facilities in the country, increase national output and strengthen supply security.

The minister also said such partnerships go beyond technology deployment alone. They can support knowledge exchange, capability development, talent enhancement and collaborative innovation, all of which are important for Malaysia’s long-term industrial competitiveness.

Graphene is widely regarded as a high-value advanced material due to its strength, light weight, conductivity and potential use across multiple industries. It can be applied in sectors such as electronics, batteries, composites, tyres, coatings, construction materials and other industrial products.

For Malaysia, increasing graphene production capacity could help build a stronger downstream ecosystem. If local industries can access more reliable graphene supply, they may be able to develop new products, improve existing materials and support higher-value manufacturing.

The launch was attended by several key industry and government figures, including Gas Malaysia chairman Tan Sri Wan Zulkiflee Wan Ariffin, British High Commission Kuala Lumpur Trade and Investment director Richard Colley, and Levidian UK chief commercial officer Ian Hopkins.

The presence of these figures reflects the wider strategic importance of the project. It is not only a technology deployment, but also a signal of stronger Malaysia-UK collaboration in clean technology, advanced manufacturing and industrial decarbonisation.

Chang also highlighted NanoMalaysia’s role in developing and commercialising graphene-based solutions through the National Graphene Action Plan 2020 and the Graphenovation Programme under the 11th and 12th Malaysia Plans.

Through these initiatives, NanoMalaysia has brought together industry players, universities and research institutions on a triple-helix platform. The goal is to stimulate market demand, encourage research commercialisation and accelerate the growth of Malaysia’s graphene ecosystem.

The Ministry of Science, Technology and Innovation is also supporting NanoMalaysia through the Strategic Research Fund for the Biomass Innovation Circular Economy Programme, known as BICEP. Through BICEP, NanoMalaysia has been working with a local university to develop local technology that can convert palm-based biogas, particularly biomethane, into hydrogen and graphene.

This local effort is important because it connects Malaysia’s natural and biomass-based resources with high-value industrial output. Instead of treating methane only as fuel or an emissions source, the gas can be upgraded into materials and clean-energy products with stronger commercial potential.

Chang said that when methane from fossil fuel sources is used, the process can be interpreted as a carbon capture, utilisation and storage mechanism, supporting Malaysia’s clean energy agenda. If biomethane is used, the process could also support the country’s hydrogen economy and circular economy ambitions.

The deployment of the LOOP system therefore fits into several national priorities at once. It supports advanced materials development, cleaner energy, industrial upgrading, carbon management and Malaysia’s ambition to move into higher-value technology sectors.

Malaysia is also positioned strongly in the regional graphene space. Chang said the country remains the only nation in Asean with a national-level graphene programme, placing Malaysia as a regional frontrunner in graphene application development, industrial adoption and commercialisation.

To date, Malaysia’s graphene initiatives have contributed to a growing intellectual property portfolio, including 92 graphene-related IP filings and 16 granted patents. This shows progress in turning graphene research and development into protectable and commercially relevant technologies.

The commercial impact of the LOOP deployment could be significant if Malaysia can scale adoption across industrial sectors. Graphene-enhanced products may improve durability, conductivity, strength and performance, depending on the application.

For Gas Malaysia, the project could open new business opportunities beyond gas distribution. By converting methane into graphene and hydrogen-rich gas, the company can create value from its existing infrastructure while supporting decarbonisation and industrial innovation.

The project also shows how traditional energy companies can evolve in response to the global energy transition. Rather than only supplying gas as a fuel, companies can explore technologies that reduce emissions and produce new materials for future industries.

For Levidian, Malaysia’s first Asia Pacific deployment is an important regional milestone. The company had previously signed a memorandum of understanding with Gas Malaysia in June 2025 to collaborate on deploying a LOOP unit in Malaysia as a reference installation for broader regional commercialisation.

The successful rollout now demonstrates how that collaboration has moved from agreement to deployment. It may also create a platform for wider adoption of methane-to-graphene technology across Southeast Asia.

The timing is also important because many industries are under pressure to reduce emissions while maintaining productivity. Technologies that can convert methane into valuable products may appeal to manufacturers, energy companies and industrial operators looking for cleaner solutions.

However, future success will depend on several factors, including production scale, cost competitiveness, graphene quality, market demand and the ability of downstream industries to adopt graphene-based solutions.

Malaysia’s advantage lies in its existing industrial base, gas infrastructure, biomass resources and national-level graphene development framework. If these elements are coordinated effectively, the country could become a stronger regional hub for graphene-related innovation.

Overall, Gas Malaysia’s deployment of Asia Pacific’s first LOOP system is a major development for Malaysia’s clean technology and advanced materials landscape. By turning methane into graphene and hydrogen-rich gas, the project creates a bridge between the gas industry, decarbonisation, high-value manufacturing and the future hydrogen economy.