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RM14 million United Oil Palm biogas plant generating 2MW to National Grid under Feed-in Tariff 


Kuala Lumpur, Thursday, 2 June 2016 –  BioNexus status company, Biotec International Asia Sdn Bhd has been awarded a biogas project by Magenko Renewables (Penang) Sdn Bhd to design; construct and operate a biogas plant today at the BioMalaysia 2016, in Kuala Lumpur Convention Center. The event marks yet another significant milestone for the development of bio-based industries in Malaysia under BiotechCorp’s purview. Also present in the event were the Minister of Science, Technology & Innovation (MOSTI), YB Datuk Seri Panglima Madius Tangau and Chairman of BiotechCorp, YBhg Professor Tan Sri Zakri Abdul Hamid.


The biogas plant will be constructed in Nibong Tebal, Penang at the United Oil Palm (UOP) mill and will be producing 2MW of electricity to be sold to Tenaga Nasional Berhad (TNB) under the Feed-in Tariff (FiT) system supervised by the Sustainable Energy Development Authority (SEDA). The RM14 million project is owned by Magenko, which has secured a 16-year Power Purchase Agreement (PPA) with TNB and has Biotec as the technology provider. This venture demonstrates the proof that sustainable renewable energy projects are not necessarily a drain on national resources, and in fact is profitable to the parties involved.


With this project being its 12th biogas plant in Southeast Asia, Biotec aims to continue working closely with players of the palm oil industry in this region as a reputable technology provider for the biogas sector. Together, all parties can contribute their expertise towards the development of biotechnology and bio-based industry in Malaysia.


Palm oil mills generate waste known as Palm Oil Mill Effluent (POME). The sludge-like organic matter is required to be treated before being discharged into the environment. Conventional treatment methods involve the use of a series of ponds. Over time, the POME is left to degrade. This method will ultimately release significant amounts of methane and carbon dioxide to the atmosphere.  These gases are the main component of biogas and they contribute to climate change.


In a biogas plant, POME is being treated by a process called anaerobic digestion with covered lagoon or tank. From this process, biogas is produced; captured and filtered before being sent to biogas engines for electricity generation.


Malaysia being the 2nd largest global oil palm producer, is constantly working towards creating a sustainable and environmental-friendly palm oil industry. Currently, calls for sustainably-produced palm oil are greater as the industry grows further. Equipping palm oil mills with biogas plants will definitely facilitate this effort by POME treatment and electricity generation. In addition, the rakyat is also benefitted with a cleaner environment and the utilization of green energy.




About BiotechCorp

BiotechCorp, an agency under the purview of Ministry of Science, Technology and Innovation (MOSTI) is the lead development agency and the prime mover of the bio-based industry in Malaysia.


BiotechCorp acts as the central contact point in providing support, facilitation and advisory services for bio-based and life sciences companies in the country.


BioNexus status companies are international and Malaysian biotech companies that qualify for fiscal incentives, grants and guarantees administered by BiotechCorp.


About Magenko Renewables (Penang) Sdn Bhd

Magenko Renewables (Penang) Sdn Bhd is a renewable energy company, established in Malaysia in 2011, and is a wholly owned subsidiary of Magenko Renewables (Asia) Sdn Bhd. The company has been set up to Build, Own & Operate an anaerobic digester and methane recovery system on the waste water treatment lagoons of a Palm Oil Mill belonging to United Oil Palm (UOP) in Nibong Tebal, Penang, Malaysia.


Subsequently, Magenko will provide the electricity produced to the local Public Power Corporation, Tenaga Nasional Berhad (TNB), using this advanced, clean and environmentally-friendly technology.


The project expects to benefit Malaysia on a national scale by providing advantages with regards to social, technological and economic development as well as substantial benefits to the environment.


About Biotec International Asia Sdn Bhd

BioNexus status company Biotec International Asia Sdn Bhd is an appendage of a Belgian-based engineering company and is involved in the provision of integrated organic matter management services for tropical regions. The company is a world technological leader in the generation, capture, handling and usage of biogas for tropical agro-based industries via the use of three main technologies such as waste water treatment (anaerobic digestion) with biogas energy capture, composting and ferti-irrigation. In Malaysia, the company works mostly with palm oil mills for waste treatment and electricity generation.


Welcome to MBLBC

Established in 1980, MBLBC is a non-profit organisation which aims to assist people and businesses from Belgium and Luxembourg in Malaysia, and strengthen their ties with the Malaysian business community.

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