Kuala Lumpur: Renewable-energy equipment supplier Wasco Greenergy Bhd (KL:GENERGY) said it needs clearer policies in Indonesia—its largest revenue contributor—before committing to major investments in biomass steam-energy systems. Indonesia accounted for 49% of the company’s revenue for the financial year ended Dec 31, 2024, reports The Edge Malaysia.
Following its listing on Bursa Malaysia’s Main Market, the company plans to expand its Indonesia operations by opening a sales office in Jakarta and establishing service centres in Pekanbaru and Sulawesi. This expansion will require leasing and upgrading facilities, purchasing equipment, hiring local staff and adding vehicles for service and logistics.
Chief executive officer Lee Yee Chong said that although Indonesia supports biomass energy, biodiesel use and plantation expansion, clearer policy direction is needed to guide the company’s long-term investments. He said Wasco Greenergy will continue working closely with customers and government agencies to understand expected developments.
Lee noted that both Malaysia and Indonesia have significant agricultural waste, making biomass a viable energy source. “Industries here depend heavily on steam, and they produce a lot of waste that can be converted into useful clean energy,” he said.
He added that Indonesia’s move towards B50 biodiesel will further increase palm oil demand, and authorities plan to allocate another 600,000 hectares of land for palm-oil-related activities.
In Malaysia, the company’s second-largest market, the biomass sector has remained underdeveloped, but Lee said this could change with new renewable-energy programmes. The government will introduce 300MW under the Feed-in-Tariff scheme next year, with half of that capacity designated for biomass. Lee said Wasco Greenergy’s strength lies in providing a full range of equipment, from biomass processing systems to boilers and Shinko steam turbine generator systems, enabling it to support palm oil mills as well as other industries aiming to reduce fossil fuel use.
He said demand is rising not only from palm oil mills but also from general industries seeking to cut carbon emissions by switching to biomass technologies. The company expects its renewable-energy business to be evenly distributed between Malaysia and Indonesia, with additional contributions from Latin America and Africa.
As at end-September, Wasco Greenergy’s order book totalled about RM249 million, of which 80% to 90% consists of renewable-energy contracts. The company currently has 31 ongoing steam-energy system projects and 81 active orders for steam turbine generators, with capacities ranging from 4.5 to 90 tonnes per hour and 0.50MW to 3.50MW.
The company plans a dividend payout ratio of 20% to 40%, depending on working capital and investment requirements.
Wasco Greenergy’s shares opened 5% lower at 95 sen on their debut, compared with the IPO price of RM1, and were trading at 94.5 sen by 11.43am, down 5.5%.
