KAB, XSD sign pact on biomass cogeneration plant project

PETALING JAYA: One-stop energy and engineering solutions provider Kinergy Advancement Bhd’s (KAB) wholly owned subsidiary KAB Energy Holdings Sdn Bhd has inked a heads of agreement (HoA) with XSD International Paper Sdn Bhd to initiate KAB’s first biomass project, focusing on power and steam generation.

The project allows KAB Energy 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.

XSD 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, it is a 100% foreign-owned entity from China and serves as an indication to KAB’s continuous strategy in broadening its customer base and reach.

KAB executive deputy chairman/group managing director Datuk Lai Keng Onn said the collaborative venture with XSD will strengthen their SES foothold in Peninsular Malaysia through their maiden biomass cogeneration project.

XSD and KAB Energy have initiated discussions on developing, owning and operating the plant, he added.

Lai said the primary objective of the project is to revolutionise their energy generation by harnessing the power of biomass or agricultural waste as a sustainable and environmentally friendly alternative energy source. Through the plant, they 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 and woodchips but also through burning gas to generate steam, contributing to a more greenhouse gas neutral approach,” said Lai.

He added that they plan to implement the biomass project on a 300-acre site in Kulim, Kedah.

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