Gebeng: A RM31 million biomass steam plant will be developed at Kaneka (Malaysia) Sdn Bhd’s chemical industrial complex in the Gebeng Industrial Estate. Knight Frank Malaysia stated that the project will be headed by BAC Renewable Energy Sdn Bhd (BACRE) through its subsidiary BACRE Gebeng Sdn Bhd, marking a significant milestone in Malaysia’s renewable energy initiatives and industrial decarbonisation efforts.
According to BERNAMA News Agency, the plant will be built under a 20-year Steam Supply and Purchase Agreement (SSPA) and will provide Kaneka Malaysia with up to 30 tonnes per hour (TPH) of green steam. This initiative aims to replace conventional natural gas-based generation, supporting Kaneka’s long-term sustainability goals. Kaneka Malaysia has targeted a 70 percent reduction in its greenhouse gas (GHG) emissions by 2030 as part of its broader commitment to achieve Net Zero by 2050.
The statement highlighted that the project’s groundbreaking ceremony underscored the importance of cross-sector collaboration in advancing the Malaysia Renewable Energy Roadmap (MyRER) and the National Energy Transition Roadmap (NETR). Knight Frank emphasized that the 3.4-acre biomass steam plant is designed to directly supply renewable steam to Kaneka Malaysia’s operations, aiming to reduce reliance on fossil fuels and lower emissions.
Significant features of the plant include the utilization of multiple biomass sources such as empty fruit bunches, palm kernel shells, and wood chips. The plant will incorporate advanced combustion and heat recovery systems for high efficiency, automated ash handling for workplace safety, and strict emission controls to comply with Department of Environment (DOE) standards.
Teh Young Khean, Knight Frank Malaysia’s executive director, stated the company’s commitment to supporting projects that promote sustainable development and responsible industrial growth. He emphasized that the biomass steam plant exemplifies how innovative project management and strategic partnerships can deliver tangible environmental benefits while supporting Malaysia’s renewable energy objectives.
Hiroyuki Nishimoto, managing director of Kaneka Malaysia, expressed that the collaboration with BACRE and its consortium partners will enable the company to reduce its carbon footprint by approximately 30,000 tonnes of carbon dioxide equivalent (tCO2e) annually while enhancing operational efficiency.
Hasnoel Ramly, director of BACRE Sdn Bhd, remarked that the project reflects BACRE’s mission to convert palm oil waste into a sustainable energy source, setting a benchmark for industrial decarbonisation in Malaysia. He noted that the biomass steam plant, scheduled to commence operations in the third quarter of 2026, will advance MyRER and NETR goals by transforming agricultural waste into clean energy, reducing industrial carbon emissions, generating local employment opportunities, and reinforcing circular economy principles.