KUALA LUMPUR (Oct 6): Elridge Energy Holdings Bhd (KL:ELRIDGE) is investing RM45 million to venture into the manufacturing and the sale of activated carbon business for use across water treatment, industrial purification and related filtration.
This marks Elridge's move further downstream from its existing palm kernel shell biomass operations.
In a filing, Elridge said its wholly owned subsidiary Lumeria Power Sdn Bhd (LP) had accepted a quotation from United Equipment Services (M) Sdn Bhd for the acquisition, installation and commissioning of six integrated activated carbon production chains for RM45 million in cash.
The production chains will be installed at a plant in Pulau Indah, Selangor, and are expected to have a combined designed capacity of up to 21,600 tonnes of activated carbon per annum once fully operational in the second half of the financial year ending Dec 31, 2027 (2HFY2027).
Elridge plans to target industrial manufacturers, water treatment operators and processing facilities in Malaysia and selected overseas markets including China and Japan.
The six production chains will be installed in two phases, Elridge said.
The first phase, comprising three production chains with a designed capacity of 10,800 tonnes a year, is expected to commence commercial production in 1HFY2027.
The remaining three chains, also with 10,800 tonnes of annual capacity, are expected to commence commercial production in 2HFY2027.
The RM45 million investment will be funded entirely through internally generated funds. Elridge said it had approximately RM198 million in cash and bank balances as at June 30, 2026, and none of the proceeds from its initial public offering will be used to fund the activated carbon business.
In a separate statement, Elridge executive director and chief executive officer Oliver Yeo said the investment would allow Elridge to move beyond supplying palm kernel business primarily as biomass fuel and convert the same feedstock into activated carbon and high-value-added products.
Citing the Business Research Company, Elridge said the global activated carbon market is estimated to grow to US$15.71 billion (RM64.19 billion), from US$9.26 billion in 2026, representing a compound annual growth rate of 14.1% during this period.
It said the commencement of the operations of the activated carbon business is subject to LP obtaining the requisite licences, permits and approvals.
Elrridge Energy’s share price has fallen 38% from its recent peak of RM1.49 on Feb 27, and closed up half a sen or 0.54% at 93 sen on Tuesday. At 93 sen, the group had a market capitalisation of RM1.86 billion.