Biogas renewable energy plant to be built in Lahad Datu - MIDA | Malaysian Investment Development Authority
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Biogas renewable energy plant to be built in Lahad Datu

Biogas renewable energy plant to be built in Lahad Datu

28 Feb 2024

Cenergi SEA Berhad (Cenergi), a subsidiary of UEM Group Berhad, and Kwantas Corporation Berhad (Kwantas), a Sabah-based integrated palm oil producer involved in the entire palm oil supply chain business with presence in Malaysia and China, have entered into a joint venture (JV) partnership to undertake the development, construction and operations of a Bio Compressed Natural Gas (BioCNG) plant in Lahad Datu.

Cenergi and Kwantas will jointly undertake the development, construction, operations and maintenance of the BioCNG plant which is located at Kwantas’ Pintasan Palm Oil Mill in Lahad Datu, expected to be operational by second quarter of 2025.

The plant will generate biogas through anaerobic digestion of POME (Palm Oil Mill Effluent) and through a process of purification and compression of the biogas, convert the biogas into BioCNG.

BioCNG has gas composition similar to that of natural gas, enabling it to be used in the same way for heating and power.

The BioCNG produced by this facility will be compressed into cylinder tubes and supplied to industrial off-takers in Lahad Datu via trailers that transport the cylinder tubes.

BioCNG is considered an environmentally friendly renewable gas derived from wastes of palm oil mills, and it will enable users to reduce their carbon emissions towards their Net Zero goals.

This development enables the start of an ecosystem which further supports the greening of the palm oil industry.

Cenergi Group CEO, Hairol Azizi Tajudin said Cenergi has a portfolio of a total of 33 biogas to electricity plants in West Malaysia, including those under construction, which harness biogas from Palm Oil Mill Effluent and convert it to electricity for injection into the grid through Sustainable Energy Development Authority (SEDA)’s Feed-in-Tariff programme.

“This partnership marks Cenergi’s inaugural venture into biogas development in Sabah, and we are excited to play a part in enhancing the renewable energy options available to the industry.

“Our goal is to deliver sustainable BioCNG for industrial players in Sabah, meeting the rising energy demand, particularly in the East Coast region.

“This investment will contribute to a new path for the harnessing of wastes from the palm oil industry into environmentally friendly products,” he said.

Meanwhile, Kwantas Group CEO, Alvin Kwan said Kwantas is excited to announce the partnership with Cenergi to launch the BioCNG plant as it marks Kwantas’ first biogas renewable energy project in Sabah.

“Our ultimate goal is to reduce carbon footprint and tackle climate change issue by capturing gas emissions from the POME and converting into sustainable BioCNG to fulfil gas and energy demands in the East Coast region of Sabah.

“With the availability of BioCNG, the wide applications of BioCNG could potentially expand to applications in the transportation and manufacturing sector,” he said.

Source: Borneo Post