Ecoscience secures RM2m EPC contract for black pellet plant in Kuantan

KUALA LUMPUR: Integrated palm oil milling services provider Ecoscience International Bhd (EIB), via its wholly-owned subsidiary Ecoscience Manufacturing & Engineering Sdn Bhd, has accepted a letter of award (LoA) for a RM200 million engineering, procurement, and construction (EPC) contract from renewable energy company, Wilhelmina Energy Malaysia Sdn Bhd (WEMSB).

Under the LOA, EIB will provide comprehensive EPC services for the TG2 black pellet plant in Kuantan, Pahang.

These services will include design and engineering, sourcing and quality assurance of equipment and materials, plant infrastructure construction, and testing and start-up activities to support commissioning and ensure operational standards are met.

The specific terms and conditions of the EPC works will be outlined in a binding EPC agreement, which is expected by November 30, 2024.

The LoA was built upon the collaboration agreement (CA) with WEMSB in March 2024, aimed at transforming agricultural waste into sustainable energy, thereby reducing coal consumption and carbon emissions.

EIB managing director Wong Choi Ong expressed confidence in delivering a robust waste-to-energy solution that aligns with WEMSB’s vision for sustainable energy transformation.

“This project is a strategic fit for our expansion into environmental and energy efficiency sectors, building on our core strengths in constructing palm oil mills, supporting facilities, and equipment fabrication.

“As the largest project to be undertaken in our corporate history, we see this as a valuable opportunity to broaden our customer base, enhance our project portfolio, and strengthen our market position.

“The LoA will significantly boost our order book, providing our group with healthy earnings visibility over the next two years,“ he said.

The TG2 black pellet plant will convert oil palm empty fruit bunch (EFB) waste into TG2 black pellets – a drop-in coal replacement fuel.

TG2 black pellets are an advanced type of biofuel pellet, providing benefits over traditional biomass pellets, including enhanced grindability, water resistance, and higher energy density.

As a drop-in fuel, it is renewable and can be used in existing pulverised coal power plants without requiring significant infrastructure modifications.

EIB will continue supporting WEMSB as it expands TG2 black pellet plants across the region.

“Beyond the EPC scope for the TG2 black pellet plant, the CA signed in March 2024 also outlined the possibility of WEMSB outsourcing the plant’s operation and maintenance (O&M) to EIB.

“We are currently exploring this opportunity, and both parties will decide in due course.

“This potential arrangement, if materialise, would create a new, recurring revenue stream for us, complementing our current project-based work,“ Wong added.

WEMSB is a subsidiary of the Netherlands-based renewable energy company Maatschappij Wilhelmina NV, specialising in converting agricultural waste streams into sustainable energy using TG2 black pellets.

The EPC works are expected to commence by December 2024, with an expected project completion timeline of 24 months from the commencement date.