INNOVATIVE agricultural investment firm Asia Platinum Capital Bhd (APCB) has inked a landmark memorandum of understanding (MOU) with Macor Shipping Sdn Bhd that not only enhances Malaysia’s export capabilities but also propels the nation’s renewable energy (RE) ambition to international presence.
This partnership spells APCB’s commitment to sustainability and innovation, particularly through the cultivation and application of Giant King Grass (GKG) as RE sources.
While APCB is currently Malaysia’s largest GKG planter, Macor Shipping is the exporter which desires to obtain a reliable supply of GKG animal feed to be processed for its South Korean end-user.
Under the MOU deal, APCB will supply Macor Shipping with 10,000 metric tonnes (MT) of GKG animal feed per month or 120,000 MT annually at US$300 (RM1,400)/MT.
Over the initial two-year term, this agreement is projected to contribute significantly to APCB’s revenue with a gross value of US$72 mil (RM336.50 mil).
Additionally, a management fee of US$30 (RM140.20)/MT will be applied to each tonne supplied in accordance with the full terms of the agreement, thus further enhancing the economic value of this collaboration.
APCB is set to cultivate GKG on more than 10,000 acres of land in Sabah to meet the requirements of Macor Shipping.
“We are proud to announce this strategic alliance with Macor Shipping which solidifies our position as a leader in the GKG market and one that is aligned with our vision to foster RE sources,” commented APCB chairman Tan Sri Mohamed Jawhar Hassan.
“Our commitment to providing Macor Shipping with reliable, high-quality GKG animal feed will fuel their production facilities and support the larger framework of Malaysia’s National Energy Transition Roadmap (NETR).”
What is GKG?
Scientifically known as Miscanthus Giganteus. GKG has been identified as a high-yield perennial grass that thrives on marginal lands.
This biomass giant which is also referred to as Uganda or elephant grass is a powerhouse in biomass production for its ability to deliver between 40 and 80 tonnes of dry matter per hectare annually depending on the fertiliser application.
APCB’s exploration into GKG’s potential for RE aligns with Malaysia’s robust biomass industry which is supported by the National Green Science and Technology Policy, the 10th Malaysia Plan (10MP), the Economic Transformation Programme (ETP) and the Renewable Energy (RE) Act of 2011.
With a yield of approximately 100 barrels of oil equivalent per hectare, GKG stands as a hope for a low-carbon future. The palletisation of GKG for direct combustion in power plants and the potential for quarterly harvests positions it as a strategic alternative to fossil fuels and a significant contributor to the reduction of coal consumption in electric power plants.
In light of global shifts towards sustainable energy sources, APCB’s initiative is timely. The cultivation of GKG for biomass, its conversion to solid fuels for electricity generation and the potential for disposable methanol fuel cell cartridges for portable electronics places Malaysia at the forefront of RE technology.
“This collaboration with Macor Shipping is not just about business growth; it’s a strategic move towards realising the vast potential of alternative energy sources like GKG,” envisages Jawhar.
“By locally growing this versatile grass, we’re contributing to reducing carbon emissions and the transition away from coal dependency. Our venture directly reflects the Malaysian government’s direction towards a greener, more sustainable energy future.” – Nov 22, 2023
Main pic credit: Cows for Cambodia