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Kota Kinabalu: A deal has been inked to to undertake the development, construction and operations of a bio compressed natural gas (BioCNG) plant in Lahad Datu.  

Cenergi SEA Berhad (Cenergi), a subsidiary of UEM Group Berhad, and Kwantas Corporation Berhad (Kwantas), a Sabah-based integrated palm oil producer involved in the entire palm oil supply chain business with presence in Malaysia and China, have entered into the joint venture.

Cenergi and Kwantas will jointly undertake the BioCNG plant project at Kwantas’s Pintasan Palm Oil Mill expected to be operational by the second quarter of 2025, according to a statement.

The plant will generate biogas through anaerobic digestion of POME (Palm Oil Mill Effluent) and through a process of purification and compression of the biogas to convert the biogas into BioCNG.