RM31 Mln Biomass Steam Plant To Be Built At Kaneka Malaysia Complex In Gebeng
KUANTAN, Sept 12 (Bernama) -- A RM31 million biomass steam plant will be developed at Kaneka (Malaysia) Sdn Bhd’s (Kaneka Malaysia) chemical industrial complex in the Gebeng Industrial Estate here.
Knight Frank Malaysia said in a statement that the project will be led by BAC Renewable Energy Sdn Bhd (BACRE) through its subsidiary BACRE Gebeng Sdn Bhd, marking a major milestone in the country’s renewable energy journey and industrial decarbonisation efforts.
“Developed under a 20-year Steam Supply and Purchase Agreement (SSPA), the plant will supply Kaneka Malaysia with up to 30 tonnes per hour (TPH) of green steam, replacing conventional natural gas-based generation and supporting Kaneka’s long-term sustainability goals.
“Kaneka Malaysia has set a target to reduce its greenhouse gas (GHG) emissions by 70 per cent by 2030, as part of its broader commitment to achieve Net Zero by 2050,” it said.
According to the statement, the project’s groundbreaking ceremony reflected the importance of cross-sector collaboration in realising the Malaysia Renewable Energy Roadmap (MyRER) and the National Energy Transition Roadmap (NETR).
Knight Frank said the 3.4-acre biomass steam plant is designed to directly supply renewable steam to Kaneka Malaysia’s operations, reducing reliance on fossil fuels and cutting emissions.
“Its key features include the use of multiple biomass sources such as empty fruit bunches, palm kernel shells and wood chips; advanced combustion and heat recovery systems for high efficiency; automated ash handling for workplace safety and smoother operations; and strict emission controls in compliance with Department of Environment (DOE) standards,” the statement read.
Knight Frank Malaysia executive director Teh Young Khean said the company is committed to supporting projects that drive sustainable development and responsible industrial growth. “This biomass steam plant exemplifies how innovative project management and strategic partnerships can deliver tangible environmental benefits while supporting Malaysia’s renewable energy goals,” he said.
Kaneka Malaysia managing director Hiroyuki Nishimoto said the collaboration with BACRE and its consortium partners will allow the company to cut its carbon footprint by about 30,000 tonnes of carbon dioxide equivalent (tCO₂e) annually while improving operational efficiency.
BACRE Sdn Bhd director Hasnoel Ramly said the project reflects BACRE’s mission to transform palm oil waste into a reliable and sustainable energy source, while setting a benchmark for industrial decarbonisation in Malaysia. He said the biomass steam plant, scheduled to begin operations in the third quarter of 2026, will advance MyRER and NETR goals by turning agricultural waste into clean energy and cutting industrial carbon emissions, creating local employment opportunities and reinforcing circular economy principles.
-- BERNAMA