Malaysia’s energy infrastructure leader Wasco Bhd has secured shareholder approval for the proposed listing of its bioenergy division, Wasco Greenergy Bhd. This marks a significant milestone as the nation’s bioenergy sector continues to develop. Wasco Greenergy is scheduled to debut on Malaysia’s local exchange in mid-December, signaling a new chapter for both the company and the broader industry.
The move comes at a time when Malaysia is seeking to diversify its energy sources and reduce its reliance on fossil fuels. The IPO approval follows Wasco’s 25th annual general meeting, where company executives outlined plans to expand their presence in bioenergy and secure stable revenue through long-term supply agreements and energy sales. Giancarlo Maccagno, managing director and CEO of Wasco, stated, “The plan is to move beyond just building plants for others. If we can lock in long-term feedstock supply and secure offtake agreements — for example, selling energy to Tenaga Nasional — we could create a stable, recurring income stream.”
From Engineering Services to Bioenergy Asset Ownership
Wasco Greenergy has evolved from its roots as an engineering, procurement, construction, and commissioning (EPCC) contractor into a full-fledged bioenergy player. The company now undertakes comprehensive EPCC projects focused on biomass energy systems, heat recovery steam generators, steam turbine generator systems, gas-fired steam systems, and palm oil milling equipment.
This strategic shift allows Wasco Greenergy to own and operate assets rather than solely providing construction services for others. Recently, the company secured an EPCC contract for a large-scale biomass steam utility plant in Johor. The new facility will process empty fruit bunch (EFB) biomass—a byproduct of palm oil production—as its primary fuel source. This project is expected to replace conventional diesel and gas usage while reducing annual carbon dioxide equivalent (CO₂e) emissions by more than 75,000 tonnes.
Wasco’s transition toward asset ownership aligns with its long-term growth strategy. By integrating operations across the supply chain—from sourcing feedstock to delivering energy—the company seeks to generate reliable income and contribute meaningfully to Malaysia’s renewable energy ambitions.
Unlocking the Renewable Potential of Palm Oil Waste in Malaysia
Malaysia and neighboring Indonesia together account for nearly half of global palm oil production. Malaysia alone produces between 18.7 and 19.4 million metric tons annually, ranking second worldwide. However, the palm oil industry also generates over 100 million tonnes of dry biomass each year—including trunks, fronds, EFB, and palm kernel shells—that remains largely untapped as an energy resource.
Experts highlight that EFB offers one of the most direct routes for converting agricultural waste into renewable energy. Chemical engineer Hong Wai Onn from the Research Institute for Sustainable Excellence and Leadership noted at the Fifth International Oil Palm Biomass Conference 2025 that much of this biomass is still considered waste despite its potential value.
Within palm oil mills, EFB is typically pressed and shredded before being co-fired with other residues like mesocarp fiber and palm kernel shells. This process generates steam and electricity for mill operations while lowering dependence on fossil fuels and reducing greenhouse gas emissions. Beyond internal use, EFB can be processed into pellets or briquettes suitable for commercial applications. Renewable energy engineer Ts. Mohd Radzi Muhamad Dul from Johor Plantations Berhad emphasized that these compressed biomass products are well-suited for export to countries such as Japan and South Korea, where demand for sustainable fuels continues to rise.
Strengthening Sustainability Standards Across Malaysia’s Biomass Supply Chain
To support sustainable development within the palm oil sector, Malaysia launched the Malaysian Sustainable Palm Oil (MSPO) Chain of Custody standard (MS 2751:2022) in March 2022. This certification ensures that palm biomass used for renewable energy meets rigorous sustainability criteria throughout the supply chain.
As of August 2025, over 5.13 million hectares of oil palm plantations nationwide have received MSPO certification. This initiative promotes transparency and traceability in biomass sourcing while supporting Malaysia’s commitment to environmental stewardship.
With Wasco Greenergy set to enter the public market and expand its portfolio of biomass projects, Malaysia’s efforts to transform palm oil waste into clean energy could accelerate further—offering economic opportunities while advancing national climate goals.
Related topics:
