Kinergy Advancement Berhad (“KAB”), a one-stop energy & engineering solutions provider, is pleased to announce that the Group’s 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.
This project allows KABEH to develop, own and operate a biomass-fuelled steam turbine cogeneration plant (“Plant”) that can generate up to 30MW of electricity and 80 tonnes of steam per hour.
XSDIP is in the business of managing activities of holding companies, manufacturing pulp, paper and paperboard, and wholesaling a variety of goods without any particular specialisation.
Notably, XSDIP is a 100% foreign owned entity from the People’s Republic of China and serves as an indication to KAB’s continuous strategy in broadening its customer base and reach.
KAB Group Managing Director Dato’ Lai Keng Onn said, “The primary objective of this project is to revolutionise our energy generation by harnessing the power of biomass or agricultural waste as a sustainable and environmentally friendly alternative energy source. 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 an 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 (“GHG”) neutral approach.”
“We plan to implement this transformative biomass project on a vast undivided plot of 300 acres in Kulim, Kedah. This ambitious endeavour encompasses multiple phases, with the current signing of the HoA marking the commencement of the development of approximately 5.06 acres. XSDIP’s expressed interest in procuring thermal energy in the form of steam generated by KABEH represents a significant opportunity to enhance our recurrent income base. This collaboration has the potential to bolster our financial sustainability and contribute to long-term growth,” he added.
