Malaysia, the world’s second-largest palm oil producer, generates more than 100 million tonnes of biomass waste each year. The Wasco Group sees palm oil waste as an underutilized source of renewable energy. (Photo: iStock)
Malaysia’s energy infrastructure company Wasco Bhd announced on Monday that its shareholders have approved the proposed listing of its bioenergy arm, Wasco Greenergy Bhd, marking a key step as the country’s bioenergy sector gains momentum.
Wasco Greenergy aims to debut on the local exchange in mid-December.
From EPCC provider to bioenergy player, Wasco diversifies its portfolio
Wasco Greenergy specializes in biomass steam energy systems, heat recovery steam generators, steam turbine generator systems, gas-fired steam systems, and palm oil milling equipment.
The Wasco Group, traditionally an engineering, procurement, construction, and commissioning (EPCC) contractor, has evolved into an asset owner undertaking full-scope EPCC works for biomass projects. The company now plans to deepen its footprint in the bioenergy sector as part of a broader long-term diversification strategy.
“The plan is to move beyond just building plants for others. If we can lock in long-term feedstock supply and secure offtake agreements — for example, selling energy to Tenaga Nasional — we could create a stable, recurring income stream,” said Giancarlo Maccagno, managing director and chief executive officer of Wasco, after its 25th annual general meeting.
Wasco’s shareholders have approved the proposed listing of Wasco Greenergy. The company plans to deepen its footprint in the bioenergy sector as part of its long-term growth strategy. (Photo: Wasco)
Wasco Greenergy recently secured an EPCC contract for a 70-tonne-per-hour biomass steam utility plant in Johor. The project, which will utilize empty fruit bunch (EFB) biomass as its primary fuel, is expected to displace conventional diesel and gas usage, cutting over 75,000 tonnes of CO₂e emissions annually.
Tapping into Malaysia’s palm oil waste potential
Wasco sees strong opportunities in Malaysia and Indonesia, where empty fruit bunches (EFB) from palm oil mills remain an underutilized source of renewable energy. Malaysia produces 18.7 to 19.4 million metric tons of palm oil annually, accounting for about 24% of global output and ranking second worldwide after Indonesia.
Malaysia’s oil palm industry produces more than 100 million tonnes of dry biomass each year, including trunks, fronds, EFB, and palm kernel shells. Much of this biomass is still treated as waste despite its considerable untapped potential, said Hong Wai Onn, a chemical engineer at the Research Institute for Sustainable Excellence and Leadership, during the Fifth International Oil Palm Biomass Conference 2025.
One of the most direct applications of EFB is as boiler fuel in palm oil mills. After being pressed and shredded, EFB is commonly co-fired with mesocarp fiber and palm kernel shells to produce steam and electricity for mill operations. This process helps reduce fossil fuel dependence and lower greenhouse gas emissions.
Beyond powering mills internally, EFB can also be compressed into pellets or briquettes for commercial use. Such biomass fuels are well-suited for export to biomass-hungry markets such as Japan and South Korea, said Ts. Mohd Radzi Muhamad Dul, renewable energy engineer at Johor Plantations Berhad.
Empty fruit bunches (EFB) can be compressed into pellets or briquettes for commercial use, making them well-suited for export to biomass-hungry markets. (Photo: Wasco)
To strengthen sustainability and traceability across the supply chain, the Malaysian Sustainable Palm Oil (MSPO) Chain of Custody for oil palm biomass (MS 2751:2022) was launched in March 2022. The standard ensures that palm biomass used for renewable energy complies with certified sustainability criteria. As of August 2025, a total of 5.13 million hectares of oil palm plantations nationwide have been certified under the MSPO scheme.
Source: The Edge (1) (2) (3), Bioenergy Insight
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