KUALA LUMPUR: Maatschappi Wilhelmina N.V (Wilhelmina) will invest US$60 million to set up the world's first TG2 black pellet plant in Kuantan, Pahang.
The plant will convert agricultural waste such as empty fruit bunch into TG2 black pellets, which is a drop-in-coal replacement fuel.
Wilhelmina co-founder and chief executive officer Barthold van Doorn highlighted the company's strategic focus on the Southeast Asia region, with Malaysia chosen as the ideal location for its inaugural plant.
Doorn said its investment into Malaysia is only the first step in its overall strategic expansion plan as the company has earmarked a number of locations in both Malaysia and other Southeast Asian countries.
"We are also looking at Indonesia, Cambodia, Vietnam and Japan to establish more TG2 black pellet plants that will also use other agricultural wastes such as coconut husks and rubber tree wood as feedstock," he said at the signing of collaboration agreement with Ecoscience International Bhd here today.
Wilhelmina today entered into a collaboration agreement with Ecoscience International Bhd for the engineering, procurement and construction (EPC) work of a nominally 15 tonne per hour TG2 black pellet plant.
It intends to engage Ecoscience's subsidiary Ecoscience Manufacturing & Engineering Sdn Bhd as the contractor to undertake the EPC work for the plant, as well as to manufacture certain structures, components, and equipment for incorporation in the plant.
Upon finalising details, both parties will execute a definitive EPC and master manufacturing agreement, which is expected by the fourth quarter of 2024 with an estimated construction duration of 16 to 18 months.
As for the operation and maintenance (O&M) of the plant, Wilhemina shall outsource to Ecoscience to operate, maintain and manage it on behalf of Wilhelmina. This will be formalised via an O&M agreement.
Ecoscience managing director Wong Choi Ong said the plant is expected to be the largest project to be undertaken in the company's corporate history.
In addition, Wong said the company sees this as a sizeable foreign direct investment into Malaysia.
"Besides taking on the EPC role, we are expected to also operate, maintain and manage the plant for Wilhelmina upon commissioning. All in all, the plant is expected to give our orderbook a significant boost, as well provide consistent recurring income to our company in the future," he added.