KUALA LUMPUR (Nov 4): Newly-listed Elridge Energy Holdings Bhd (KL:ELRIDGE) said it has entered into a deal to supply biomass feedstock to a Japanese trading company for 15 years.

Under the memorandum of understanding (MOU) signed with JFE Shoji Group on Monday, Elridge Energy will supply the Japanese company 150,000 tonnes of Green Gold Label certified palm kernel shells annually, from April 2025 until March 2040.

The long-term MOU is expected to contribute positively to Elridge Energy’s financial performance into the foreseeable future, the group said in a bourse filing.

“This long-term MOU also shows that the demand for certified biomass fuel is growing, especially in countries like Japan, which is highly committed to addressing climate change,” said Elridge Energy’s chief executive officer Oliver Yeo in a separate statement.

Takeshi Sudo, managing director of JFE Shoji (Malaysia) Sdn Bhd, said, "We have selected to form a long-term strategic partnership with Elridge Energy based on factors including reliability, cost efficiency, capacity and trust-worthiness. We hope that this collaboration will help us to better serve markets like Japan and Thailand.”

Biomass fuel products, such as palm kernel shells and wood pellets, can be used for electricity generation in power plants and as fuel in industrial boilers in various types of manufacturing-related industries.

Elridge Energy’s shares, which were listed on Aug 22, closed unchanged at 48 sen on Monday, giving the group a market capitalisation of RM960 million. The stock has risen 65.5% from its listing price of 29 sen.