KAB teams up with XSDIP for biomass cogeneration project

KINERGY Advancement Bhd (KAB), a one-stop energy & engineering solutions provider, is collaborating with XSD International Paper Sdn Bhd (XSDIP) for its first biomass project.

The partnership aims to develop a biomass-fueled steam turbine cogeneration plant, capable of generating up to 30MW of electricity and 80 tonnes of steam per hour.

The venture signifies KAB’s commitment to sustainable energy solutions and diversifying its clientele, with XSDIP being a 100% foreign-owned company from China.

KAB Energy Holdings Sdn Bhd (KABEH), a wholly-owned subsidiary of KAB, has inked a heads of agreement (HoA) with XSDIP, marking the commencement of the biomass project.

The main objective is to harness the power of biomass or agricultural waste as a sustainable and environmentally friendly alternative energy source.

By utilising biomass fuel derived from Empty Fruit Bunches (EFB) and woodchips, as well as burning gas, the cogeneration plant will significantly reduce waste production and promote responsible utilisation of biomass resources.

The project’s output is expected to include up to 30MW of electricity and 80 tonnes of steam per hour, supporting a more sustainable and greener approach to energy generation.

KAB plans to implement this transformative biomass project on a vast undivided plot of 300 acres in Kulim, Kedah.

With the initial phase covering approximately 5.06 acres, the partnership with XSDIP offers an opportunity to bolster KAB’s recurrent income base.

By procuring thermal energy in the form of steam generated by KABEH, XSDIP’s involvement will contribute to the project’s financial sustainability and long-term growth.

The collaboration showcases KAB’s expertise and reinforces its commitment to expanding recurrent income, promoting innovative development, and driving sustainable energy initiatives.

KAB’s executive deputy chairman and group CEO Datuk Lai Keng Onnsaid the project represents a significant milestone in strengthening KAB’s position in the sustainable energy solutions (SES) sector.

He said the partnership with XSDIP demonstrates KAB’s commitment to providing sustainable energy solutions internationally.

Through this biomass cogeneration project, KAB aims to contribute to a more sustainable energy future, revolutionising energy generation and reducing the environmental impact associated with conventional power sources. – TMR