Kuala Lumpur: Wasco Bhd is planning to expand beyond its traditional oil and gas (O&G) business by investing in biomass power plants to generate steady, long-term income. The company, known for providing pipe services in the O&G sector, currently focuses on engineering, procurement, construction, and commissioning (EPCC) for renewable energy projects. Now, it is considering becoming an asset owner in the biomass space, reports The Edge Malaysia.
Speaking after the company’s 25th annual general meeting, managing director and group CEO Giancarlo Maccagno said that the goal is to move past just building plants for clients. He explained that by securing long-term feedstock supply and energy offtake agreements — such as selling power to utility giant Tenaga Nasional — the company could build a more stable and recurring revenue stream.
Maccagno described the move as a natural progression for Wasco, and one that fits well with its current renewable energy operations. At present, the company is involved in full EPCC projects for biomass facilities, including steam turbine supply, mainly serving the palm oil industry. In both Malaysia and Indonesia, empty fruit bunches (EFB) from palm oil mills present a largely untapped source of biomass energy.
Despite the opportunity, Maccagno stressed that Wasco will only commit to projects once it has secured both supply and demand. “The risk is if either the feedstock provider pulls out or the energy buyer fails to follow through. We won’t proceed unless all key aspects are in place,” he said. He added that each plant could cost between RM30 million and RM40 million.
Wasco is not setting a deadline for its first biomass investment, preferring to wait for the right conditions. “There’s no urgency. Our existing business is performing well. But this strategy offers a promising future, as it can reduce the ups and downs of project-based income,” Maccagno noted.
This move aligns with Malaysia’s broader energy policy, which is increasingly supporting renewable sources like biomass and small hydro, in addition to solar power.
As of the end of financial year 2024, Wasco reported a group order book of RM2.5 billion, with 85% coming from the O&G sector and the remaining 15% from renewable energy. Its tender book currently stands at RM13 billion.
