KAB secures first biomass cogeneration project

KAB executive deputy chairman cum group managing director Datuk Lai Keng Onn

KUALA LUMPUR: Kinergy Advancement Bhd’s (KAB) wholly-owned subsidiary, KAB Energy Holdings Sdn Bhd (KABEH) has inked a heads of agreement (HoA) with XSD International Paper Sdn Bhd (XSDIP), to initiate KAB’s first biomass project, focusing on power and steam generation.

XSDIP manufactures pulp, paper and paperboard, and wholesales a variety of goods without any particular specialisation. XSDIP is a 100% foreign-owned entity from China.

In a statement, KAB said the project allowed KABEH to develop, own and operate a biomass-fuelled steam turbine cogeneration plant that can generate up to 30MW of electricity and 80 tonnes of steam per hour.

"We are thrilled to embark on this collaborative venture with XSDIP, as we strengthen our sustainable energy solutions (SES) foothold in peninsular Malaysia through our maiden biomass cogeneration project.

“Together, XSDIP and KABEH have initiated discussions that encompass the comprehensive aspects of developing, owning, and operating the Plant. This momentous step is facilitated through a signed HoA, wherein all parties commit to leveraging their collective expertise and resources,” KAB executive deputy chairman cum group managing director Datuk Lai Keng Onn said in a statement.

“Through the plant, we can efficiently generate up to 30MW of electricity and 80 tonnes of steam per hour, not only reducing the waste produced but also promoting efficient and responsible utilisation of biomass resources.

“We aim to not only generate electricity through utilising biomass fuel derived from empty fruit bunches (EFB) and woodchips but also through burning gas to generate steam, contributing to a more greenhouse gas neutral approach,” Lai said, adding that it plan to implement this biomass project on a vast undivided plot of 300 acres in Kulim, Kedah.