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LOCAL NEWS

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LOCAL NEWS

@ green | March-April. 2026

Scaling biomass use

GAS Malaysia Berhad has teamed up with Wasco Greenergy Berhad to explore the role of biomass in powering industrial operations, marking a step towards lower-carbon energy solutions in Peninsular Malaysia.

In a statement on Apr 27, both
parties confirmed the signing of a Memorandum of Understanding( MoU) to carry out a feasibility study of biomass-fired steam systems jointly.
The study will examine various models, including on-site, centralised and hybrid systems that combine biomass with natural gas, to improve cost efficiency while supporting decarbonisation.
The assessment will examine industrial energy demand, potential project sites, feedstock availability, and suitable business models to enable wider adoption among industrial users.
“ Industrial customers are increasingly seeking energy solutions that balance reliability, cost and sustainability. This partnership enables us to evaluate how biomass can complement our existing offerings while supporting Malaysia’ s energy transition agenda,” said Gas Malaysia President and Group Chief Executive Officer Berhad Azli Mohamed.
Wasco Greenergy Berhad Chief Executive Officer Lee Yee Chong added:“ Decarbonising industrial heat requires solutions that are both technically viable and commercially scalable. This collaboration allows us to rigorously assess where biomass can be deployed at scale, alongside existing energy systems, to deliver practical and competitive outcomes for industrial users”.
Both companies will pool their technical and commercial capabilities to determine practical deployment strategies for biomass-based steam solutions.
The initiative supports Gas Malaysia’ s longer-term strategy to expand beyond its core operations into valueadded, lower-carbon offerings. For Greenergy, it aligns with its post-IPO direction of strengthening recurring income streams through sustainable, asset-based ventures.
More broadly, the collaboration mirrors a growing shift across Southeast Asia, as industries turn to alternative fuels. In Malaysia, abundant agricultural residues, particularly from the palm oil sector, present strong potential as a scalable biomass energy source.

Floating solar drive

TERENGGANU is stepping up its renewable energy ambitions with a large-scale floating solar development at Tasik Kenyir, positioning the project as both a new revenue stream and a long-term shift away from fossil fuel dependence.
The first phase of the hydro-hybrid floating solar( HHFS) project is expected to deliver steady annual returns to the state once operational, with estimates ranging from about RM10 million to as much as RM40 million, depending on revenue components and the project structure.
Income will be derived largely from water surface usage fees, alongside permits and related charges involving several state agencies.
The project, located in Hulu Terengganu, will see Phase 1 generating between 600 and 640 megawatts( MW) of clean energy. It forms part of a broader plan to scale up to 2.5 gigawatts( GW) over the next five to 10 years, potentially making it one of the largest floating solar developments globally.
State Digital Economy, New Income, Trade, Industry and Green Technology Committee Chairman Mohd Nurkhuzaini Ab Rahman said a significant portion of the projected revenue would come from payments to the Terengganu Water Resources Board, with additional contributions from permitting and landrelated fees.
Separately, Terengganu Incorporated described the initiative as a strategic move to diversify the state’ s income base.
“ Our intention at TI( Terengganu
Inc) is to ensure that this project can contribute to state revenue, while gradually reducing Terengganu’ s dependence on oil royalty income in the long term.
“ Although it may take time, at least as a start, around RM10 million will be paid to the state government each year from this project,” he said.
Beyond revenue, the project is expected to generate employment opportunities, with estimates ranging from about 200 jobs in initial phases to up to 5,000 workers during development, more than half of whom are
KENYIR POWER PLAY: The large-scale project forms part of a multibillion-ringgit plan to scale renewable energy output.
expected to be local hires.
The engineering, procurement, construction, and commissioning contract for the first phase, valued at over RM2 billion, has already undergone tendering. At the same time, the broader development spans approximately 38,000 hectares of artificial lake area.
Developed in collaboration with TNB Power Generation, the project will also incorporate battery energy storage systems, reinforcing its role in supporting grid stability as Malaysia accelerates its energy transition. – @ green