KUALA LUMPUR (June 13): TH Plantations Bhd (KL:THPLANT) said it is teaming up with UEM Lestra Bhd, a wholly owned unit of UEM Group, to develop a 1.2 megawatt (MW) biogas power plant in Kluang, Johor.

In a statement on Thursday, TH Plantations said the project will be carried out through a joint venture between its wholly owned unit THP Applications & Services Sdn Bhd, and UEM Lestra's subsidiary Cenergi RE Sdn Bhd.

TH Plantations, the plantation arm of Lembaga Tabung Haji, said the plant — which is set to begin operations in 2026 — will generate enough electricity to power up to 1,500 homes annually. The plant is also expected to prevent 20,000 tonnes of carbon emissions each year, which is equivalent to 4,760 cars driven in a year.

TH Plantations chief executive officer Mohamed Zainurin Mohamed Zain said the project aligns with the company’s Al-Falah 22/22 strategies, aimed at optimising the treatment of palm oil mill effluent and reducing greenhouse gas emissions.

"Renewable energy is poised to play an increasingly significant role in Malaysia's electricity generation, given the abundance of biomass and biogas resources. TH Plantations is committed to exploring opportunities to become a reliable supplier of bio-stock for the renewable energy industry.

"At TH Plantations, we are always looking for ways to enhance Tabung Haji's investment value while prioritising environmental sustainability,” he added.

Main Market-listed TH Plantations is currently engaged in the business of oil palm, rubber and teak plantations. The company’s land bank to date stands at more than 97,000 hectares covering 38 estates and six mills in Peninsular Malaysia, Sabah and Sarawak as well as Kalimantan in Indonesia.

The company, which is 73.84% owned by Tabung Haji, reported a 13.63% year-on-year increase in net profit to RM13.04 million for the first quarter ended March 31, 2024, driven by higher operating profit. Revenue rose 7.47% to RM157.31 million, primarily due to higher sales volumes of crude palm oil and fresh fruit bunches.

Shares of TH Plantations closed half a sen or 0.79% higher at 63.5 sen on Thursday, translating into a market capitalisation of RM561.25 million. Year-to-date, the counter has gained over 29%.