BIOENERGY-based Elridge Energy Holdings Bhd has unveiled its entry into the activated carbon business with a RM45 mil investment in six integrated activated carbon production chains in Klang (Selangor) through its wholly-owned subsidiary Lumeria Power Sdn Bhd.
The investment enables Elridge to move beyond supplying palm kernel shells (PKS) primarily as biomass fuel before converting the same feedstock into activated carbon, a higher value-added product serving water treatment, air and gas purification, industrial filtration and other industrial applications.
Upon completion of both phases in 2H FY2027, the Klang facility is expected to have a total designed production capacity of 21,600 metric tonnes (MT) of activated carbon per annum.
“This investment marks an important step in the group’s strategy to move further downstream and capture greater value from the PKS supply chain,” commented Elridge’s CEO Oliver Yeo.
“Rather than participating only at the biomass fuel stage, we intend to leverage our existing access to PKS feedstock, logistics capabilities and industry relationships to produce activated carbon which is a higher value-added product with applications across water treatment, air purification and a broad range of industrial processes.”
Added Yeo who is also Elridge’s executive director: “As production ramps up from 2027, we expect the activated carbon business to broaden the group’s revenue base by contributing positively to future earnings.”
A high value-added product
The six production chains will be installed in two phases. The first phase comprising three production chains with a combined designed capacity of 10,800 MT per annum is expected to commence commercial production in 1H FY2027.
The remaining three production chains are expected to commence commercial production in 2H FY2027, thus bringing the plant’s total designed capacity to 21,600 MT per annum.
Production output is expected to ramp up progressively after commercial production commences, subject to the group obtaining the requisite licences, permits and approvals.
PKS is well-suited as a raw material for activated carbon owing to its relatively high carbon content and hard structure in addition to being abundantly available in Malaysia and Indonesia as a byproduct of the palm oil industry.
The group intends to market its activated carbon mainly to the water treatment sector by targeting industrial manufacturers, water treatment operators and processing facilities in Malaysia and selected overseas markets, including established markets like China and Japan.
China and Japan represent established markets for activated carbon. According to MarketsandMarkets, China’s market is projected to grow from approximately US$1.08 bil in 2023 to US$2.27 bil by 2028 or a 11.6% CAGR (compound annual growth rate) with its water treatment segment expected to rise from US$302.7 mil to US$509.0 mil over the same period.
According to Grand View Research, Japan’s activated carbon market is projected to grow from approximately US$312.1 mil in 2024 to US$388.8 mil by 2033, supported by applications including water treatment and air purification.
Meanwhile, the global market is estimated to grow from US$8.07 bil in 2025 to US$9.26 bil in 2026 and is projected to reach US$15.71 bil by 2030, according to The Business Research Company (2026) with Asia-Pacific identified as the largest and fastest-growing regional market in 2025.
The new business is expected to generate revenue following the commencement and progressive ramp-up of commercial production although its eventual earnings contribution will depend on production volumes, selling prices, costs and market conditions.
At 12.15pm. Elridge was down 1 sen or 1.08% to 92 sen with 3.22 million shares traded, this valuing the company at RM1.84 bil. – Oct 7, 2026
