KAB to Develop 1^st Greenfield Biogas Project in Indonesia, Level Up RE Competence

● Extended presence in Indonesia with a 100% stake acquisition of PT GESO.

● Greenfield biogas project development with an installed capacity of 4.26MW.

● Strategic deal sealed with a 25-year exclusive PPA with PT PLN and multiple contracts with palm oil millers.

KUALA LUMPUR,– APAC 2024 Top 10 Energy Sustainability Solutions Provider, also known as the One-Stop Sustainable Energy & Engineering Solutions Specialist Kinergy Advancement Berhad (“KAB” or “Group”, “敬业”, Bloomberg: KASB MK) (Formerly known as Kejuruteraan Asastera Berhad), has today via its wholly-owned subsidiary KAB Energy Holdings Sdn Bhd ("KABEH"), announced a term sheet to acquire the entire equity interest in PT Green Energy Specialist One (“PT GESO”) and build a 4.26MW biogas plant in Aceh, Indonesia (“Proposed Acquisition”).

This Proposed Acquisition, which includes purchaser exclusivity over the 6.5-hectare land where the biogas plant will be constructed, exemplifies KAB’s enhanced capabilities in not just planning and constructing but also developing, maintaining, and owning diverse energy projects, cementing its leadership in the sustainable energy sector.

PT GESO has already secured a Power Purchase Agreement (“PPA”) with PT Perusahaan Listrik Negara (“PLN”), Indonesia's state electricity company. The PPA, which has a duration of 25 years from the commercial operation date, ensures a steady and reliable revenue stream, bolstering KAB’s recurring income on the regional stage.

Additionally, this proposed acquisition entails an exclusive agreement with four palm oil millers’ sale and purchase of palm oil mill effluent, securing a consistent supply of raw materials essential for biogas production to KABEH before the formal acquisition. This could be marked as one of the strategic arrangements aimed at enhancing the operational efficiency and reliability of the plant.

KABEH has agreed to complete this strategic deal for a reasonable consideration of approximately RM8.89 million.

This plant, a premier greenfield biogas facility with an installed capacity of 4.26MW, will enhance KAB’s SES diverse energy portfolio and reinforce its commitment to sustainable energy generation and environmental stewardship.

Dato’ Lai Keng Onn (“Dato’ Lai”), Executive Deputy Chairman cum Group Managing Director of KAB, said, “The acquisition of the Aceh biogas plant is a strategic move that aligns perfectly with our growth plan in the realm of sustainable energy. Indonesia, being the world’s largest producer of palm oil, presents a compelling choice for this development, with abundant feedstock available for biogas production.

This project strengthens our renewable energy portfolio and positions us as a competent energy solutions provider to leverage regional growth opportunities. Upon completion, the Aceh biogas plant will be another recurring revenue generator for KAB, reinforcing our foothold in the Southeast Asian market and supporting our mission of driving sustainable energy development."

 KAB, which has been recognised as APAC 2024 Top 10 Energy Sustainability Solutions Provider, is aggressively expanding its footprint in the sustainable energy space. The latest move to acquire PT GESO reflects the Group's intent to solidifying its market presence as a distinctive energy player while ensuring its advancement in the rapidly growing South-East Asian energy market.