Elridge Energy Holdings Bhd is expanding its Kuantan plant with the proposed installation and commissioning of four new palm kernel shell (PKS) biomass production lines, aimed at lifting production capacity by about 33% to meet rising demand in the biomass sector.
The expansion involves an investment of approximately RM13 million and is targeted for completion in the fourth quarter of the financial year ending 2026 (4QFY26), funded through internally generated funds and/or bank borrowings.
Upon commissioning, each of the four new lines will add 120,000 metric tonnes (MT) per annum, bringing total additional capacity to 480,000MT annually. This will increase Elridge’s overall installed capacity from 1.44MT to 1.92MT per annum.
Executive Director and Chief Executive Officer Oliver Yeo said the expansion reflects the group’s focus on scaling production capacity to capture growing opportunities in the biomass market and strengthen long-term value creation while positioning the group to better meet rising market demand.
He emphasised that the expansion is separate from the capacity plans outlined in the group’s prospectus dated Aug 6, 2024.
Yeo highlighted that the new production lines are expected to contribute positively to revenue and earnings from FY27, while having no material impact on share capital, gearing or earnings for FY26.
