Kinergy Advancement Bhd (KAB) has joined hands with Agromate Holdings Sdn Bhd (Agromate) to spearhead bioenergy or renewable energy (RE) generation across palm oil mills (POM) in the country.
With Malaysia being 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, this KAB-Agromate collaboration seeks to capitalise on a largely under-tapped market with huge recurring income potentials, it said in a statement today (Dec 12).
KAB, formerly known as Kejuruteraan Asastera Berhad, announced today that its pivotal sustainable energy solutions (SES) entity, KAB Energy Holdings Sdn Bhd (KABEH) has entered into a shareholder agreement with one-stop agriculture solutions provider Agromate, to establish a cooperative partnership via Genplan Advisory & Management Sdn Bhd (Genplan).
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, leveraging 26 years of KAB’s expertise in energy solutions and Agromate’s 44 years of extensive knowledge in the palm oil industry.
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.”
KAB executive deputy chairman cum managing director Datuk Lai Keng Onn said the group aggressively moving in-line with global efforts to
transition to sustainable energy solutions.
“This partnership with Agromate reflects our 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 environmental criteria,” he said.
Moreover, Lai said bioenergy stands as a crucial element among the six energy transition levers outlined in the National Energy Transition Roadmap (NETR).
“Biogas also promises a 95% reliability rate. This waste-to-energy system transforms waste into useful resources such as steam and electricity and serves as an ideal replacement for carbon-intensive, non-renewable fossil fuels.
“In addition to that, we 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.
“Together, we are taking bold steps toward a greener future,” he added.
Menawhile, Agromate group chief executive officer Edward Tang Ming Yng said it remains committed in contributing towards the growth of our society, environment and nation in a responsible and sustainable manner across every land that we operate in.
“Our collaboration with KAB marks the first milestone for Agromate group in embarking on renewable resources. We look forward to many more future milestones as Agromate Group continues to be committed to ESG to significantly reduce the impact of carbon emissions, thus preserving a better environment for future generations,” said Tang.
He added KAB’s involvement in this ground-breaking partnership demonstrates its capability in driving a sustainable future and its role in advancing ESG principles in the sector.
