- Set to supply 30 tonnes/hour of renewable steam from Q3 2026
- Expected to reduce Kaneka’s greenhouse gas emissions by 30,000 tCO₂e annually
Kaneka (Malaysia) Sdn Bhd and BAC Renewable Energy Sdn Bhd (BACRE) marked the start of construction for a US$7 million (RM30 million) biomass steam plant in Gebeng, Pahang, on 12 September 2025. Developed under a 20-year Steam Supply and Purchase Agreement, the facility will replace natural gas–fired steam generation at Kaneka Malaysia’s chemical industrial complex, supplying up to 30 tonnes per hour of green steam.
This initiative supports Kaneka Malaysia’s target to reduce greenhouse gas emissions by 70% by 2030 and its broader commitment to achieve net-zero emissions by 2050.
[1 MYR = 0.23 USD]
BACRE Gebeng Sdn Bhd will serve as the project developer, owner, and operator, while Knight Frank Project Services Sdn Bhd has been appointed as turnkey contractor. Boilermech Sdn Bhd will provide boiler technology and system integration. Financial support comes from Bank Islam Malaysia Berhad, and Emnes Metal Sdn Bhd will facilitate cross-sector coordination.
Kaneka Malaysia’s managing director, Hiroyuki Nishimoto, said: “This green steam initiative reflects our commitment to sustainability and innovation. Working with BACRE and its consortium of partners allows us to significantly reduce our carbon footprint by about 30,000 tCO₂e per year while enhancing operational efficiency. This is also a breakthrough for Kaneka Corporation, Japan, by having its first biomass steam plant here in Kaneka Malaysia.”
Continue reading at https://oursustainabilitymatters.com/kaneka-malaysia-and-bacre-break-ground-on-rm31-million-biomass-steam-plant-in-gebeng-industrial-estate/ for the full article as DNA is transitioning our sustainability coverage to a standalone news site.