NEWLY ACE Market listed Elridge Energy Holdings Bhd has signed a MOU to supply palm kernel shells (PKS) to Japan-based JFE Shoji Group, a month after it forged a similar collaboration with Indonesia-based biomass fuel trader PT Orion APAC Indonesia.

Biomass fuel products, namely PKS and wood pellets, can be used for electricity generation in power plants and as fuel in industrial boilers in various types of manufacturing related industries.

In the MOU signed by Elridge CEO Oliver Yeo and JFE Shoji (Malaysia) Sdn Bhd MD Takeshi Sudo on Nov 4, Elridge said its unit Bio Eneco Sdn Bhd (BESB) will supply of 150,000 metric tons of green gold label certified PKS annually over a 15-year period, beginning in April 2025 and concluding in March 2040.

BESB is principally involved in the manufacturing and trading of biomass fuel products, particularly palm kernel shells and wood pellets, it said in an exchange filing  filing today (Nov 4).

Incorporated in Japan in 1948, it said JFE is principally involved in the trading of steel, minerals, machinery, chemical and biomass products. Its holding company, listed on the Tokyo Stock Exchange, is principally engaged in the steel, shipbuilding and energy related businesses.

In September, Elridge signed a MOU with Orion which will see its wholly-owned subsidiary Bio Eneco Sdn Bhd supplying 150,000 metric tons of PKS annually over a three-year period, beginning in April 2025, with an option for automatic renewal for an additional three years, subject to renegotiated terms and conditions. – TMR