Emissions of biogas from palm oil mill effluent (POME) via anaerobic digestion is a greenhouse gas (GHG) that can be mitigated by capturing and utilising as renewable energy (RE). Huge energy potential of biogas has been reported, but none has specifically explored this potential based on actual scenario of mills equipped with biogas plant in the Malaysian palm oil industry. This study analyses the potential of biogas from POME for RE and GHG emissions reduction from two scenarios: overall (nationwide) and mills having biogas plant. The overall potential of biogas volume, electricity generation and bio-compressed natural gas (Bio-CNG) production from all palm oil mills in 2021 were estimated at 1648 million m³, 508 MW and 988 million m³ Bio-CNG, respectively. With 135 mills having biogas capturing facilities, 33% of the country’s overall potential energy from POME could be harnessed and utilised, to potentially mitigate 4.96 million tonnes CO₂eq GHG annually. The study indicated that electricity generation is the major use of biogas in the country, particularly for grid connection. Activities of biogas capture and utilisation have thus demonstrated a feasible approach in addressing sustainable issue of the palm oil industry, which contribute to RE and GHG reduction targets in Malaysia.