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  Home > Our Businesses > Integrated Business Model > Biomass Power Plant

The Biomass power plant is the first of its kind in the world that uses the empty fruit bunches as its source of renewable fuel. In doing so, Kwantas is able to produce power for the entire processing and manufacturing facilities within the Edible Oils Complex. This ensures that the company's operations has a constant power supply and is not affected by power outages. Therefore there is no disruption to production and delivery schedules can be met.

The power plant has a capacity of 9.8 MW and the company may also supply surplus power to the local power supply company. By using empty fruit bunches, a waste product from palm oil processing, Kwantas puts into practice its commitment to keeping a green environment.

However, Kwantas provided for an impairment of its plant and equipment for RM11.9 million with regards to the 9.8 MW Biomass power plant for the financial year ended 30 June 2015. The Management has decided to temporary cease operation of the power plant as a result of high running costs associated with its operation. The cost of generating power and steam to refinery and kernel crushing plant was no longer economic and competitive as compared to the electricity rates offered by the local electricity board. Hence, it was no longer viable to keep the plant operating.

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