KUALA LUMPUR: Elridge Energy Holdings Bhd's wholly-owned subsidiary, Bio Eneco Sdn Bhd, has signed a memorandum of understanding (MoU) with JFE Shoji Group, a trading group headquartered in Tokyo, to supply biomass fuel for 15 years, beginning next year.

This long-term MoU is expected to positively impact Elridge Energy's financial performance into the foreseeable future, said Elridge Energy in a statement today.

Under the MoU, Elridge Energy will supply 150,000 tonnes of Green Gold Label (GGL)-certified palm kernel shells (PKS) annually, beginning in April 2025 and concluding in March 2040.

"This MoU reflects the growing demand for certified biomass fuel, particularly in countries like Japan, which is highly committed to addressing climate change," said Elridge Energy executive director and chief executive officer, Oliver Yeo.

Meanwhile, JFE Shoji (Malaysia) Sdn Bhd managing director Takeshi Sudo noted that the formation of this strategic partnership with Elridge Energy was based on factors such as reliability, cost efficiency,capacity and trustworthiness.

"We hope that this collaboration will enable us to better serve markets like Japan and Thailand," said Sudo.

Biomass fuel products, namely PKS and wood pellets, can be used for electricity generation in powerplants and as fuel in industrial boilers in various manufacturing

 -related industries.