Kawan Renergy gets RM11.8m contract for bioethanol plant conversion

KUALA LUMPUR (June 28): Engineering service company Kawan Renergy Bhd (KL:KENERGY) has secured an RM11.8 million contract to convert a bioethanol plant in Ipoh, Perak from using molasses as feedstock, to corn.

The contract from Chemical Industries Malaya Sdn Bhd (CIM), which covers fabrication and installation services, will begin on July 1, Kawan Renergy said in an exchange filing. Works are expected to be completed in four months, it added.

“Securing this contract from CIM, a prominent ethanol producer, demonstrates our technical capabilities in delivering innovative and quality engineering solutions, and strengthens our credibility in the sector,” said Kawan Renergy’s managing director Lim Thou Lai in a separate statement.

The latest job follows the initial RM2.2 million contract awarded by CIM in May 2024 for the design, supply and installation of steel structure of the intake-and-milling plant. Kawan Renergy’s orderbook now stands at RM138.3 million.

Looking ahead, the outlook is optimistic as demand for renewable energy and co-generation plants grows, as companies are increasingly focused on enhancing energy efficiency and lowering carbon footprint, said Lim.

“We are also preparing to venture into the independent power producer business, focusing on biogas and biomass power plants,” he said. “This strategic move will leverage our technical capabilities, and allow us to generate more recurring revenue by developing and managing our own energy projects.”

Kawan Renergy, listed on the ACE Market just a month ago, was trading one sen higher at 90 sen at noon break on Friday, valuing the company at RM495 million on Bursa Malaysia. Shares of Kawan Renergy have tripled from the initial public offering (IPO) price of 30 sen.

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