UMW Group’s wholly-owned subsidiary, UMW Industrial Power Services Sdn. Bhd. (“UIPS”), an authorised distributor of INNIO’s Jenbacher engines in Malaysia, signed a Maintenance Service Agreement (“MSA”) valued at RM12 million with Cenergi SEA Berhad’s subsidiary, Cenergi RE Sdn. Bhd. (“Cenergi RE”). Cenergi SEA Berhad is a sustainable energy subsidiary of Khazanah Nasional Berhad.
The five-year MSA will see UIPS providing maintenance services for Cenergi RE’s existing Jenbacher biogas engines installed at various locations throughout Malaysia as well as additional new Jenbacher biogas engines to be installed. The Jenbacher engines distributed by UIPS is MyHijau certified, which bodes well for Cenergi RE, as it had secured the Sustainable Energy Development Authority (“SEDA”) Feed-in Tariff (“FiT”) quotas.
Incorporated in 2013, Cenergi SEA Berhad which focuses on the renewable energy (“RE”) space, is the largest grid-connected palm oil mill effluent (“POME”) biogas power plants in the country. It currently owns and operates 15 biogas power plants with a total capacity to generate 25MW of power. 4 of its biogas plants, with a total generation capacity of 6.2MW of power, are currently equipped with 5 Jenbacher biogas engines. With 8 more biogas power plants capable of generating up to 14.5MW of electricity underway, it paves the way for further collaboration between UIPS and Cenergi RE.
The MSA was signed by UMW Equipment Division’s President, Megat Shahrul Azmir Nordin and Cenergi SEA Berhad Group Chief Executive Officer, Hairol Azizi Tajudin and witnessed by UMW Holdings Berhad’s President & Group CEO, Dato’ Ahmad Fuaad Kenali.
Hairol Azizi Tajudin said, “With UIPS as our maintenance service provider for the Jenbacher biogas engines, we are confident in the seamless operation and upkeep of our existing plants. Their expertise in servicing these engines, coupled with their commitment to sustainability, aligns perfectly with our mission to harness the potential of renewable energy sources. This collaboration with UIPS further strengthens our position as a key player in the renewable energy industry, and we are excited about the future prospects it brings.”
Dato’ Ahmad Fuaad Kenali remarked, “The Group’s CREST@UMW strategy extends to playing a bigger role in building a sustainable business which requires us to work closely with our partners to promote products in the green and renewable energy space. We are fortunate to work with Cenergi RE, which promotes renewable energy, and will ensure that the biogas engines are well maintained to ensure they will continue to be productive throughout their life span. We look forward to further our collaboration to pave the way for a greener and more sustainable future.”
He added, “The Jenbacher technology that UIPS offers effectively generates clean energy and heat from bio-waste, making a significant impact on reducing CO2 emissions. Power plants using Jenbacher engines operating on natural gas or renewable energy sources can achieve power conversion efficiencies of up to a remarkable 48.7%.
Additionally, when operating in combined heat and power configuration, overall efficiency could increase up to an impressive 95%. This will help our customers in maximising their returns, whilst reducing their carbon footprint and waste.”
