Kinergy Advancement pioneers RE solution

NST Tue, Jan 02, 2024 08:41am - 3 months View Original

KUALA LUMPUR: Being a distinctive player in the renewable energy market, Kinergy Advancement Bhd (KAB) is making a bold leap into the telecommunication infrastructure industry, driven by the implementation of 5G technology that demands substantial infrastructure expansion.

Executive deputy chairman and group managing director Datuk Lai Keng Onn said there is a pressing need for a denser network of towers given the smaller coverage radius of 5G towers relative to 4G. 

"Recognising this, and in alignment with the government's aggressive 5G rollout plans, KAB, as a holder of the network facilities provider (NFP) licence, is strategically positioning itself to undertake the set up of this critical infrastructure. 

"Our business model for this sector is centred around building and leasing these 5G towers to mobile network operators, which will provide KAB with a stable and recurring income stream," Lai told Business Times.

Apart from the telecommunications infrastructure segment, KAB is focusing on sustainable energy in the palm oil industry.

The company has acquired Future Biomass Gasification Sdn Bhd and collaborated with Agromate Holdings Sdn Bhd to establish a cooperative partnership, via Genplan Advisory & Management Sdn Bhd, to generate renewable energy (RE) across palm oil mills.

Future Biomass, which was acquired by KAB in January this year, is closely aligned with the latter's broader goals of advancing renewable energy while contributing positively to the earth's ecological balance.

"Malaysia's status as the second-largest producer of palm oil provides us with an abundance of raw materials for biogas production, presenting an opportunity for us to lead in this domain," Lai said.

Sharing insights on the impact of KAB's partnership with Agromate on sustainable energy in the palm oil industry, Lim said the joint venture is a pivotal step in transforming Malaysia's palm oil industry with innovative sustainable energy solutions. 

"Our collaborative efforts focus on optimising biomass resources in palm oil mills for renewable energy generation. 

"This initiative aims to enhance operational efficiency and reduce carbon emissions and underlines our commitment to advancing renewable energy pathways.

"A significant aspect of this partnership is the promising 95 per cent reliability rate of our bioenergy projects. 

"These projects will effectively transform waste into valuable resources, such as steam and electricity, positioning biogas as a viable and environmentally friendly alternative to fossil fuels," Lim noted. 

He said this approach aligns with the National Energy Transition Roadmap's objectives and demonstrates KAB's dedication to leading the sustainable energy charge in the palm oil industry and beyond.

On other strategic acquisitions, KAB has also acquired Matahari Suria Sdn Bhd, Indonesia-based PT Inpola Mitra Elektrindo (IME) and 80 per cent ownership in Thailand-based Sure Green Co Ltd.

Lim said Matahari Suria's expertise in renewable energy generation at a competitive tariff will be a cornerstone for expanding KAB's energy asset portfolio. 

"We are exploring rooftop solar projects for universities, utilising Matahari Suria's capabilities under the new ownership structure to enhance our renewable energy offerings," he said.

As for IME, Lim said KAB's acquisition marks its maiden venture into Indonesia, seizing the tremendous renewable energy (RE) opportunities presented by the country's vast land area and need for energy in rural and off-grid locations. 

"Our strategic focus with IME includes exploring a variety of renewable energy solutions tailored to these unique environments, such as solar, mini-hydro, and biogas projects," Lim said.

When asked to elaborate on the role and contributions that Sure Green is expected to make in terms of providing engineering, procurement, construction, and commission services for solar photovoltaic systems and green technology engineering services, Lim said Sure Green is integral to KAB's strategy of expanding its solar reach in Thailand. 

"We will leverage their capabilities in solar photovoltaic (PV) systems and green technology engineering services, contributing significantly to our Asean energy solutions portfolio," he said.

KAB strategically utilises clean energy solutions, specifically cogeneration (Cogen) and waste heat recovery (WHR) technology. 

These methods efficiently repurpose waste heat for energy, offering cost savings, operational optimisation, and environmental benefits. 

"Aligned with Malaysia's green goals, we integrate cogen and WHR systems, supporting the National Energy Transition Roadmap. 

"Engaging in initiatives like the Corporate Green Power Programme showcases our role as a solar power producer. 

"We also recognise the need for a diversified approach beyond renewables for net-zero targets and demonstrate our commitment to the global renewable energy market via our comprehensive energy solutions," Lim said.

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