KUALA LUMPUR: Kinergy Advancement Bhd (KAB) has entered into a shareholder agreement with Agromate Holdings Sdn Bhd to establish a cooperative partnership, via Genplan Advisory & Management Sdn Bhd, to generate renewable energy (RE) across palm oil mills (POM).
Malaysia is the world's second-largest palm oil producer, supported by its 447 POMs that has a processing capacity of 119.5 million tonnes per year.
KAB believes the collaboration with Agromate will help it capitalise on a largely under-tapped market with huge recurring income potentials.
Both parties aim to reshape the operations of the POMs by actively leveraging biomass resources and other sustainable energy projects to advance renewable energy 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.
"We are aggressively moving in-line with global efforts to transition to sustainable energy solutions. 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. Our collaboration will push forward the creation of advanced bioenergy 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")," KAB executive deputy chairman cum group managing director Datuk Lai Keng Onn said in a statement today.
Explaining that biogas has a 95 per cent reliability rate, he said the waste-to-energy system transforms waste into useful resources such as steam and electricity.
Biogas serves as an ideal replacement for carbon-intensive, non-renewable fossil fuels, which helps to significantly lower the amount of fossil fuels used in the production of energy from renewable sources.
In addition to that, Lai said it could also produce non-fossil fuel-based fertilisers from biogas, which will contribute to sustainable agriculture practices, promoting soil health and reducing dependence on chemical fertilisers.