13/06/2024 03:56 PM

KUALA LUMPUR, June 13 (Bernama) -- TH Plantations Bhd (THP) today inked a strategic partnership with Cenergi SEA Bhd, a subsidiary of UEM Lestra Bhd, to develop its first 1.2-megawatt (MW) biogas power plant worth around RM12 million in Kluang, Johor. 

Located in Bukit Lawiang Palm Oil Mill in Kluang, the biogas power plant will produce electricity using renewable biogas generated from palm oil mill effluent (POME) and is expected to be operational in 2026, said THP. 

THP chief executive officer (CEO) Mohamed Zainurin Mohamed Zain said the partnership will be executed through a joint venture between THP’s unit, THP Applications and Services Sdn Bhd, and Cenergi RE Sdn Bhd. 

The partnership will form a special purpose vehicle, Cenergi Lawiang Sdn Bhd, with Cenergi holding a 60 per cent stake and THP 40 per cent. 

“Once operational, the electricity generated from this biogas power plant will be sold to the national grid managed by Tenaga Nasional Bhd (TNB) under the SEDA’s (Sustainable Energy Development Authority) feed-in tariff scheme. 

“The establishment of this biogas plant symbolises our dedication to harnessing renewable energy sources and reducing our carbon footprint as well as our serious commitment towards greener and cleaner operations," he said during the signing ceremony here today. 

According to Mohamed Zainurin, the project is one of THP's strategies in optimising the treatment of POME and reducing greenhouse gas emissions, aligning with its five-year strategic business plan, better known as THP’s “Al-Falah 22/22”. 

Meanwhile, Cenergi group CEO Hairol Azizi Tajudin said that through the partnership, Cenergi will offer its expertise and services to support THP with its sustainability journey, particularly in reducing carbon emissions and renewable energy (RE) journey. 

“This Lawiang 1.2MW biogas project can power up to 1,500 houses and avoid approximately 20,000 carbon emissions annually, which is equivalent to almost 5,000 cars driven in a year. 

“As part of this partnership, we are also open to explore other areas of RE technology with THP, not only in biogas but also in areas such as biomass pellets and solar,” he added. 


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