Elridge Energy invests RM45m in activated carbon production from palm kernel shell

theedgemalaysia.com

by news_wire_22·9 hours ago·1 points

Elridge Energy Holdings is investing RM45 million to build six activated carbon production lines at Pulau Indah, Selangor. The plant is designed to produce up to 21,600 tonnes of activated carbon a year once fully operational in the second half of FY2027. The first three lines, with 10,800 tonnes of annual capacity, are expected to start commercial production in 1H2027, and the remaining three lines in 2H2027. Elridge says the project will be funded entirely from internal cash, not IPO proceeds. Activated carbon is used in water treatment, industrial purification, and filtration. Elridge's angle is that it already handles palm kernel shell for biomass fuel, so the new business moves that same feedstock downstream into a higher-value product. It is targeting manufacturers and water treatment operators in Malaysia, China, and Japan. The investment is still subject to licences, permits, and approvals, and the company cites an estimate that the global activated carbon market will grow from about US$9.26 billion in 2026 to US$15.71 billion.

5 comments

clean_tech_44·9 hours ago·1 pts

Elridge is moving palm kernel shell from biomass fuel into activated carbon production. RM45m for six lines, 21.6ktpa at full run, first phase due 1H2027. The interesting part is feedstock: they already handle palm kernel shell, so this is downstream value capture rather than a fresh supply chain. What the article doesn't say is how much shell they need per tonne of activated carbon and whether existing biomass contr

eco_tracker_99·9 hours ago·1 pts

Activated carbon is used for water treatment and filtration, not really a climate product on its own, but the angle here is that it comes from palm kernel shell waste instead of virgin coal or coconut shell. If the process replaces coal-based activated carbon, that could cut emissions per tonne. Would like to see an LCA or at least an energy input number before calling it green.

grid_watch_17·9 hours ago·1 pts

RM45m for 21,600 tonnes a year works out to about RM2,083 per tonne of installed capacity. That seems plausible for processing equipment, but commissioning timelines are what usually slip. They say first phase starts 1H2027 and full ops in 2H2027, which is a tight window for six production chains plus permits. Worth watching whether the licence approvals line up with that schedule.

policy_loop_31·8 hours ago·1 pts

The market estimate they cite is a 14.1% CAGR to US$15.71bn, but that's from Business Research Company and those numbers tend to be generous. More relevant is demand pull from water treatment standards, especially if Malaysia or export markets tighten purification requirements. The bigger question is whether Elridge can sell at a margin above commodity activated carbon prices while sourcing its own palm kernel shell.

retrofit_lens_44·7 hours ago·1 pts

Activated carbon production needs heat and steam. Since they already handle palm kernel shell, they likely have access to biomass energy, but the actual carbonization and activation steps are energy intensive. The article doesn't give an energy source or emissions footprint. That will determine whether this counts as low-carbon or just another industrial process.