Japan-based Kaneka has begun construction of its first biomass steam facility in Malaysia, partnering with renewable energy developer BAC Renewable Energy (BACRE). The groundbreaking took place at Kaneka Malaysia’s site in the Gebeng Industrial Estate, with the MYR31 million plant scheduled to begin operations in the third quarter of 2026.
The facility, to be owned and operated by BACRE’s subsidiary BACRE Gebeng under a 20-year Steam Supply and Purchase Agreement, will supply Kaneka Malaysia with up to 30 tonnes per hour of renewable steam. The plant is expected to cut around 30,000 tonnes of CO₂ equivalent annually by replacing natural gas, with further reductions of 70,000 tonnes over ten years from methane avoidance in untreated palm residues.
The project contributes to Kaneka Malaysia’s net-zero 2050 target, including a 70 per cent greenhouse gas (GHG) reduction goal by 2030. Delivery partners include Knight Frank Project Services (contractor), Boilermech Sdn Bhd (technology), Bank Islam Malaysia Bhd (finance), and Emnes (sustainability integration). Kaneka and BACRE highlighted the initiative as both an industrial decarbonisation milestone and a model for sustainable energy in Malaysia.
