ELRIDGE ENERGY HOLDINGS BERHAD (0318.KL)
- Sector
- Energy
- Price
- RM 0.970 (-1.02%)
- Market cap
- 1.9B MYR
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About ELRIDGE ENERGY HOLDINGS BERHAD
Company Description
Elridge Energy Holdings Berhad is a leading Malaysian biomass fuel producer founded in 2011 as Bio Eneco. Operating through its wholly owned subsidiary Bio Eneco Sdn Bhd, the company specializes in manufacturing and exporting palm kernel shells (PKS) and wood pellets, serving domestic and Asia-Pacific markets. Initially focused on local PKS supply, it expanded into exports in 2013. The group operates key processing facilities located in Telok Gong and Kapar, strategically positioned near Port Klang. It holds PEFC, Green Label, and Green Gold Label (GGL) certifications, ensuring compliance with international sustainability standards for renewable energy projects.
Business Model
The company generates revenue through the manufacturing and trading of biomass fuel products, primarily PKS and wood pellets. Products are sold internationally to traders under Free on Board (FOB) shipping arrangements or collected directly, minimizing logistics risk. Elridge employs a mix of short- and long-term sales contracts featuring fixed volume commitments and flexible market-linked pricing mechanisms to preserve margins. Key operational advantages include strategic facility locations near ports and palm oil mills reducing transport costs, economies of scale with an estimated 20% Malaysian market share, sustainability certifications allowing up to a 15% price premium for GGL-certified PKS, and a patented PKS processing method enhancing product quality and efficiency.
Revenue Segment
In FY2024, revenue was segmented into palm kernel shells (PKS) contributing 85% and wood pellets contributing 15%.
Geographic Segment
In FY2024, Japan accounted for approximately 20% of revenue. Malaysia was the largest individual contributor, followed by Japan and Singapore, with these three markets collectively accounting for more than 95% of total revenue.
Top Client
Key clients include JFE Shoji Group (secured under a 15-year memorandum of understanding), PT Orion APAC Indonesia (secured under a three-year memorandum of understanding), and Berkana Power Company Limited (secured under a memorandum of understanding).
Operational Scale
For the most recent period, the company operated an annual production capacity of approximately 960,000 metric tonnes for PKS and 36,000 metric tonnes for wood pellets across facilities in Telok Gong and Kapar. Future capacity targets include expanding total capacity by 50% to approximately 1.44 million metric tonnes per annum by the end of FY2025 with new factories in Pasir Gudang and Kuantan, and reaching 1.68 million metric tonnes per annum by FY2026 with the Lahad Datu facility. The Kapar site also offers potential expansion of an additional 240,000 metric tonnes per annum.
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