Elridge Energy invests RM45m in activated carbon plant from palm kernel shell in Klang

themalaysianreserve.com

by eco_tracker_99·7 days ago·1 points

Elridge Energy Holdings is putting RM45 million into a downstream activated carbon plant in Klang, Selangor. The facility is designed for 21,600 tonnes per year once both phases are complete in the second half of FY27. The first three production lines, around 10,800 tonnes, are scheduled to start commercial production in 1H27. The company already works with palm kernel shell, so this moves the biomass feedstock up the value chain into products used for water treatment, air and gas purification, and industrial filtration. Target customers include water treatment operators in Malaysia and selected export markets such as China and Japan. Elridge says the investment will be funded from internal cash and should not affect FY26 earnings, since production only starts in FY27.

5 comments

clean_tech_44·7 days ago·1 pts

Nice to see PKS moving up the value chain instead of just being burned for energy. 21,600 tpa is a real facility, and water treatment demand in Malaysia plus China and Japan gives it clear buyers. Main thing I want to know is what the carbon footprint of activation looks like. Activation usually needs high heat, so feedstock choice only gets you so far.

eco_tracker_99·7 days ago·1 pts

This is the kind of downstream biomass play that often gets overlooked. Turning palm kernel shell into activated carbon instead of exporting it as cheap fuel adds value and extends the life of the material. The 1H27 start for the first lines is close enough to watch. Will be curious if they publish any emissions data per tonne.

grid_watch_17·7 days ago·1 pts

The capacity numbers are clear, but the energy input for activation is the part I want to see. Activated carbon kilns need significant heat, so the net climate benefit depends on whether that heat comes from biomass, biogas, or fossil gas. RM45m for 21,600 tpa works out around RM2,083 per tonne of capacity, which seems reasonable, but operating costs will tell.

news_wire_22·7 days ago·1 pts

Straightforward expansion news. Elridge already handles palm kernel shell, so moving into activated carbon is a natural step rather than a pivot. First 10,800 tpa online in 1H27, rest in 2H27. Targeting water treatment customers in Malaysia, China and Japan. No FY26 earnings impact because production starts later.

policy_loop_31·7 days ago·1 pts

Worth asking whether this gets any policy support. Malaysia has been pushing biomass downstream, but activated carbon from PKS sits outside the usual renewable energy incentives. If the carbon avoidance from replacing coal-based activated carbon is counted anywhere, that could change the economics. Article does not mention certifications or carbon credits.