KUALA LUMPUR (Jan 21): Elridge Energy Holdings Bhd (KL:ELRIDGE) is expanding its regional biomass fuel footprint by securing a one-year biomass fuel supply agreement with Thailand-based Berkana Power Company Ltd.

Under a memorandum of understanding signed on Wednesday (Jan 21), Elridge's wholly owned Bio Eneco Sdn Bhd will deliver an estimated 100,000 tonnes of biomass fuel for a year to Berkana Power via 10 shipments. The deal comes with an automatic renewal option, subject to mutually agreed terms.

Elridge Energy CEO Oliver Yeo said the agreement reflects Bio Eneco’s ability to support regular, high-volume biomass fuel deliveries for regional power generation demand, adding that Thailand remains an important market for biomass energy.

“Beyond the annual volume, the shipment cadence and renewal structure provide operational visibility and flexibility for both parties. This aligns well with our strategy of building a balanced contract portfolio across long-term and shorter-cycle supply arrangements in the region,” Yeo added.

Elridge Energy is principally involved in the manufacturing and trading of biomass fuel products, particularly palm kernel shells and wood pellets.

Its customers are mainly biomass fuel trading companies that sell to end-users such as industrial manufacturers and biomass power plant operators, with operations primarily across Malaysia, Singapore, Indonesia, Thailand and Japan, the group’s annual report showed.

Shares of Elridge Energy closed unchanged at RM1 on Wednesday, giving it a market capitalisation of RM2 billion. The counter was listed in August 2024 with an initial public offer price of 29 sen.