Sarawak’s Acacia Power partners with Italy firm to develop wooden chips power plant
02 Dec 2024
Sarawak’s Acacia Power Sdn Bhd (Acacia Power) today signed a Memorandum of Understanding (MoU) with NextChem SpA, a sustainable technology solutions provider under Italy’s Maire Group, to develop a large capacity wooden chips power plant in Sarawak.
Signing the MoU in the presence of Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg were Acacia Power director Tan Sri Datuk Amar Abdul Aziz Husain and NextChem SpA Corporate and Business Strategy senior vice president Giovanni Sale.
Abang Johari in his speech said the collaboration between the two companies will be able to contribute to global efforts in combating climate change.
“We feel that there are solutions to renewable energy, one of which is our rich weather where we can plant acacia.
“We can have renewable plantation of acacia within one block which is divided into sub-blocks and upon its maturity within three to four years, this then becomes feedstock for biomass,” he said at the ceremony which was held at Hikmah Exchange Event Centre here.
He expressed confidence that with NextChem SpA‘s years of experience, they will be able to innovate through new technology which will result in high productivity.
“I am sure that by collaborating with your experience and our experience in planting acacia, we can meet the challenge of addressing the global climate change,” he said.
Abang Johari also mentioned that although Sarawak may be a small, emerging economy from Borneo, the state strives to do its part to combat climate change through the various resources it has.
“We provide renewable energy through hydro, and we migrated to solar where the cost of solar has reduced over the 10 years by 80 per cent.
“We are also exploring hydrogen economy and people were initially sceptical because of its high cost. But perhaps now is the right time where there will be mass production of hydrogen and advancement of technology on electrolysers.
“When that happens, then there is a possibility as predicted by the International Energy Agency (IEA) that by 2030, the cost will be reduced by 50 per cent and I think we may be able to achieve that,” he said.
Under the MoU, NextChem SpA, renowned for its expertise in low-carbon technologies and energy transition solutions, will lead the technical and feasibility studies for the project.
The collaboration will include pre-feasibility and feasibility studies covering feedstock availability, site location, technology, market dynamics, cost estimates, and financial modelling; and advanced engineering design, where pending approvals both parties will proceed with Front-End Engineering Design (FEED) to prepare for the final investment decision.
Through this collaboration, Acacia Power and NextChem SpA aim to deliver an efficient, innovative solution that aligns with Sarawak’s ambitions to integrate renewable energy as a cornerstone of its socio-economic growth.
Also present were Italian Ambassador to Malaysia Massimo Rustico, Deputy State Secretary (Economic Planning and Development) Datu Dr Muhammad Abdullah Zaidel and Acacia Power director Dato Muhammad Ibrahim.
Source: Borneo Post
