UMW Group’s wholly-owned subsidiary, UMW Industrial Power Services Sdn. Bhd. (“UIPS”) has been appointed as the authorised distributor of INNIO’s Jenbacher engines in Malaysia, marking UIPS’ maiden foray into the green and renewable energy sector. The distribution of this product supports UMW’s Sustainability Pillar under CREST@UMW, which is also in line with the 12th Malaysia Plan’s goal to achieve 100% carbon neutrality by 2050.
To apprise industry players of UIPS’ foray into the green energy sector, UMW and INNIO Jenbacher had organised a Green Energy Forum entitled Biogas, Moving Forward which was held today. INNIO kicked-off the forum by showcasing its range of products and sharing technology updates on its Jenbacher engines, while UIPS shared its capabilities as a total solution provider for the industry.
YB Nik Nazmi Nik Ahmad, Minister of Natural Resources, Environment and Climate Change, delivered a keynote address and subsequently presented Dato’ Ahmad Fuaad Kenali, President & Group CEO, UMW Holdings Berhad with the MyHijau Mark certificate for the Jenbacher gas engines, which is Malaysia’s official green recognition scheme issued by the Malaysian Green Technology and Climate Change Corporation (“MGTC”). The presentation of the green certification was witnessed by Tan Sri Dato’ Sri Hamad Kama Piah Che Othman, Group Chairman, UMW Holdings Berhad and Megat Shahrul Azmir, President of Equipment Division, UMW. Also present at the event were H.E. Andreas Launer, the Austrian Ambassador to Malaysia, Carsten Dommermuth, Vice President & Managing Director, INNIO’s Jenbacher product brand, APAC region, as well as Carl Richers, Vice President, Product Management & Marketing, INNIO’s Jenbacher product brand.
The MyHijau Mark certification presents an opportunity for the product to become a source for green procurement. Furthermore, with the MyHijau Mark certification, UIPS’s customers will be eligible for Green Income Tax Exemption (“GITE”) and Green Investment Tax Allowance (“GITA”). The green certification also allows UIPS to promote Jenbacher gas engines as well as offer sales and maintenance support to all biogas plant developers who had secured the Sustainable Energy Development Authority (“SEDA”) Feed-in Tariff (“FiT”) quotas and palm oil mill owners for their own power generation.
INNIO is an Austrian-based global energy solution and service provider for the power generation and compression segments, with products based on renewable energy sources under its portfolio. INNIO’s Jenbacher products provide sustainable and economical power for businesses and industries ready to invest in a green hydrogen future. Its engines are paving the way for the global transition to net zero by running on a broad range of energy sources, from natural gas to hydrogen, as well as other renewable gas including biogas.
YB Nik Nazmi in his speech noted that while Malaysia has made reasonable progress in transitioning to a lower carbon energy system, “there is still much to be done to reduce our reliance on fossil fuels.”
The government, he said, therefore, will:
I. Improve the existing policy and regulatory framework of electricity supply,
II. Map out a bolder and more aspirational energy transition plan and,
III. Provide avenues and participate in strategic discourse on transformative policies, regulations and financial incentives to stimulate local and regional markets for energy transition.
“But as I have mentioned earlier, the success of this transition will require broad-based alliances. We need companies to adopt business models and invest, innovate, research, learn and co-create products and technology that support this aim.”
On the collaboration between UIPS and INNIO, UMW Holdings Berhad Group Chairman, Tan Sri Dato’ Sri Hamad Kama Piah Che Othman said, “Our CREST@UMW strategy extends to playing a bigger role in building a sustainable nation, as we work closely with our partners to promote green products. With the accelerated reach for conscious consumerism, adding INNIO’s Jenbacher engines to our product offering is one of our efforts to promote sustainability, not only into our business strategy but also to our clients, as these engines have obtained the MyHijau Mark certification. With an estimation of up to 100 MegaWatt (“MW”) of biogas plant capacity set to come online over the next five years, it is envisaged that there will be an increased demand for gas engines as the government continues to award yearly FiT quota and enforce carbon capture and emission controls.”
“Our Jenbacher technology 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 electrical efficiencies of up to a remarkable 48.7%. Additionally, when operating in combined heat and power configuration, overall efficiency increases up to an impressive 95%. INNIO is dedicated to delivering solutions that pave the way for a greener and more sustainable future. And we are proud to support the government of Malaysia’s journey to achieve 100% carbon neutrality,” said Carl Richers, Vice President, Product Management & Marketing, INNIO’s Jenbacher product brand.
Today’s forum also aims to provide a platform for proactive dialogue between all stakeholders within the biogas industry to strengthen cooperation and encourage innovative collaborations aimed at scaling up the nation’s green agenda. Government agencies championing the development and advancement of green products namely the Malaysian Industrial Development Authority (“MIDA”), MGTC and SEDA also participated in the forum, bringing forth discussions on the nation’s agenda on green energy, including Renewable Energy roadmap, decarbonisation plan, regulations and incentives as well as other relevant topics.