KUALA LUMPUR: Kinergy Advancement Bhd's (KAB) subsidiary KAB Energy Holdings Sdn Bhd has signed 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.
This project allows KAB Energy to develop, own and operate a biomass-fuelled steam turbine cogeneration plant that can generate up to 30 megawatts (MW) of electricity and 80 tonnes of steam per hour.
KAB executive deputy chairman cum group managing director Datuk Lai Keng Onn said together, XSDIP and KAB Energy have initiated discussions that encompass the comprehensive aspects of developing, owning, and operating the plant.
"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," he said in a statement today. According to Lai, the primary objective of this project is to revolutionise the company's energy generation by harnessing the power of biomass or agricultural waste as a sustainable and environmentally friendly alternative energy source.
He added that through the plant, KAB can efficiently generate up to 30MW of electricity and 80 tonnes of steam per hour, not only reducing the waste produced but also promoting an efficient and responsible utilisation of biomass resources.
He said the company aims 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 (GHG) neutral approach.
"We plan to implement this transformative biomass project on a vast undivided plot of 121.4 hectares in Kulim, Kedah.
"This ambitious endeavour encompasses multiple phases, with the current signing of the HoA marking the commencement of the development of approximately 2.05 hectares," he noted.
Lai also said XSDIP's expressed interest in procuring thermal energy in the form of steam generated by KAB Energy represents a significant opportunity to enhance our recurrent income base.
He added that this collaboration has the potential to bolster the company's financial sustainability and contribute to long-term growth.