SUSTAINABLE energy & engineering solutions specialist Kinergy Advancement Bhd (previously Kejuruteraan Asastera Bhd/KAB) has joined hands with Malaysia’s top fertiliser supplier Agromate Holdings Sdn Bhd to spearhead bioenergy or renewable energy (RE) generation across palm oil mills (POM) in the country.
With Malaysia being the world’s second-largest palm oil producer and supported by its 447 POMs with annual processing capacity of 119.5 million tonnes, this KAB-Agromate collaboration seeks to capitalise on a largely under-tapped market with huge recurring income potentials.
Towards this end, KAB through its sustainable energy solutions (SES) entity KAB Energy Holdings Sdn Bhd has inked a shareholder agreement with Agromate to establish a cooperative partnership via Genplan Advisory & Management Sdn Bhd.
Both parties aim to re-shape the operations of POMs by actively leveraging biomass resources and other sustainable energy projects to advance RE pathways.
Additionally, Genplan is anticipated to conduct engineering, procurement, construction and commissioning (EPCC) works tailored towards environmentally-friendly projects. This will guarantee the long-term and sustainable performance of energy-related endeavours through efficient operation and maintenance services.
Leveraging 26 years of KAB’s expertise in energy solutions and Agromate’s 44 years of extensive knowledge in the palm oil industry, this partnership will actively contribute to curbing carbon footprints and significantly enhancing energy efficiency within the POM sector.
“We are aggressively moving in-line with global efforts to transition to sustainable energy solutions,” commented KAB’s group managing director Datuk Lai Keng Onn. “This partnership with Agromate reflects our genuine interest and commitment to lead the charge in innovating the sustainable energy sector, specifically within the palm oil industry.”
Added Lai who is KAB’s executive deputy chairman: “Our collaboration will push forward the creation of advanced bio-energy projects and sustainable energy solutions that meet top-notch environmental criteria. Moreover, bioenergy stands as a crucial element among the six energy transition levers outlined in the National Energy Transition Roadmap (NETR).”
In fact, biogas also promises a 95% reliability rate. This waste-to-energy system transforms waste into useful resources such as steam and electricity. As such, biogas serves as an ideal replacement for carbon-intensive, non-renewable fossil fuels, hence helping to significantly lower the amount of fossil fuels used in the production of energy from renewable sources.
Meanwhile, Agromate group CEO Edward Tang Ming Yng said the group’s collaboration with KAB marks its first milestone in embarking on renewable resources.
“We look forward to many more future milestones as Agromate Group continues to be committed to ESG (environmental, social and governance) to significantly reduce the impact of carbon emissions, thus preserving a better environment for future generations,” added Tang.
At the close of today’s trading, KAB was up 1 sen or 2.82% to 36.5 sen with 16.06 million shares traded, thus valuing the company at RM710 mil. – Dec 12, 2023