KUALA LUMPUR (Dec 6): UMW Group’s wholly owned subsidiary, UMW Industrial Power Services Sdn Bhd (“UIPS”), an authorised distributor of INNIO Jenbacher’s engines in Malaysia, signed a long-term service agreement (“LTSA”) with IOI Corporation Bhd’s plantation business, valued at RM50 million.

The LTSA will see UIPS providing maintenance services for seven units of Jenbacher biogas engines installed at IOI Plantation Services Sdn Bhd’s seven palm oil mills in Lahad Datu and Sandakan in Sabah. The seven Jenbacher biogas engines have a total generation capacity of 5,523 kilowatt (kW) of power. The power generated will be utilised for the operations at the mills, living quarters, as well as for auxiliary usage.

The LTSA will cover two life cycles of the seven biogas engines and engine block replacement. The scope of work includes services and maintenance for the engines for a duration of 16 years. The scheduled maintenance is aimed at achieving an optimum capacity of 7,000 operating hours annually.

The LTSA was signed by UIPS general manager Roslan Yahaya and IOI Plantation Services mills & engineering (Sabah) general manager Raymond Herbertson at a signing ceremony held in Sandakan. At the event, seven LTSAs were signed with Ladang Sabah Mill, Pamol Sabah Mill, Mayvin Mill, Morisem Mill, Leepang Mill, Syarimo Mill and Unico Desa Mill, all owned and operated by IOI Plantation Services, which currently operates 10 mills in Sabah.

Herbertson stated that the strategic LTSA with UIPS will ensure optimal condition of IOI’s biogas engines, as it progressively moves forward to achieve its net-zero greenhouse gas emissions for Scope 1, 2 and 3 by 2040.

UMW Holdings Bhd officer-in-charge Megat Shahrul Azmir said, “We would like to extend our appreciation to IOI Plantation Services Sdn Bhd for their support and confidence in our products and services. We will ensure that the biogas engines are well maintained, to ensure they will continue to be productive throughout their life span”.

“The Jenbacher technology that UIPS offers effectively generates clean energy and heat from bio-waste, making a significant impact on reducing CO2 (carbon dioxide) emissions. Power plants using Jenbacher engines operating on natural gas or renewable energy sources can achieve power conversion efficiencies of up to a remarkable 48.7%.

“Additionally, when operating in combined heat and power configuration, the overall efficiency could increase up to an impressive 95%. This will help our customers in maximising their returns, while reducing their carbon footprint and waste,” he added.