Thank you for Subscribing to Energy Business Review Weekly Brief
Top 10 Energy Sustainability Solutions Provider in APAC 2024: Kinergy Advancement Berhad (KAB)
Energy Business Review | Tuesday, April 23, 2024
For the 2nd ‘Top 10 Energy Sustainability Solutions Providers in APAC 2024’ list by Energy Business Review, Kinergy Advancement Berhad (KAB), Malaysia's leading One-Stop Energy & Engineering Solutions Provider, has secured a notable position. This prestigious accolade recognises KAB's capabilities in providing energy alternatives to assist clients in developing sustainable energy practices. These solutions have been proven to yield cost-saving benefits for businesses, concurrently fostering a positive impact on environment, social and governance (ESG) factors. This establishes the company as a recognised leader in the energy industry.
Decisions Matter, Efforts Count.
Stay ahead of the industry with exclusive feature stories on the top companies, expert insights and the latest news delivered straight to your inbox. Subscribe today.
The forthcoming special edition of Energy Sustainability by the magazine in May 2024 will feature a full 4-page profile of KAB, providing valuable insights into its latest advancements and developments in the energy business field while achieving an admirable balance between profitability and sustainability. With a reach to over 86,000 qualified subscribers in the APAC region, including key decision-makers such as Renewable Energy Program Heads, Facilities Directors, Energy Directors, and Chief Sustainability Officers, this feature will significantly boost Kinergy Advancement's visibility and validate its capabilities as a holistic provider of innovative sustainable energy solutions. As KAB continues to expand its Sustainable Energy Solutions (SES) portfolio and drive strategic initiatives and investments, this recognition serves as an excellent testament to the company's rapid development and its market presence as a trailblazer in the energy industry.
From Traditional Mechanical & Electrical Engineering Solutions to
Innovative Sustainable Energy Powerhouse
Established in 1997, initially as Kejuruteraan Asastera Berhad, KAB has transitioned from its roots of over twenty-six (26) years of experience in mechanical and electrical (M&E) engineering solutions to emerge as a leading force in Sustainable Energy Solutions (SES). Over the years, KAB has demonstrated its dedication not only to its clients but also its core business focus. The company has consistently delivered projects with excellence, maintaining its reputation for high quality work. Most importantly, its resilience in adapting to an ever-evolving market landscape and changing conditions is commendable and worthy of recognition.
One of the primary reasons for its success, marking a pivotal milestone in June 2023, is how the shift in its business focus has enabled it to drive positive changes amidst the global crisis and address the pressing environmental and economy challenges.
In the financial year ending on December 31, 2023 (FY2023), KAB articulated its successful transformation, notably through its rebranding initiative. Complemented by clear objectives to scale, expand, and diversify, the decision to shift its business focus resonates with the Group's visionary endeavour. This includes its adeptness in seizing numerous opportunities and continuously enhancing its capability for business advancement.
Unique Preposition Sets Its Stand in the Industry
Access to Full Article: https://cdn.kinergyadvancement.com/Z8Kcv1901.pdf
While terms like "renewable", "clean" and "green" are commonly heard in discussions about energy platforms, there is often controversy surrounding their actual impact and contribution to the energy transition movement. KAB's SES segment addresses all three aspects of these concerns, offering multiple innovative energy solutions that serve as Alternatives to addressing one of clients’ primary concerns – operational expenses. With the continued rise in electricity demand and costs, it becomes increasingly crucial to accept the changing landscape and emphasise the importance of strategic expansion, which could level up KAB's position in this playing field. As a pioneering One-Stop Solutions Provider with a proven track record of success, the company's diverse portfolio includes projects in co-generation, waste heat recovery, solar, biogas, and hydroelectric power. In under 5 years within this segment, KAB has demonstrated its versatility, resilience and expertise in engineering, effectively transferring its technical know-how from the M&E engineering sector into Sustainable Energy.
The most notable development in 2023 is the 52MW gas engine power plant partner project with PETRONAS Gas Berhad (PGB) at the Sipitang Oil & Gas Industrial Park. This project, along with securing RM230.0 million Engineering, Procurement, Construction, and Commissioning (EPCC) contracts marked a monumental progression for KAB. This power plant, as Sabah’s inaugural nearshore natural gas facility and Malaysia's largest gas engine power plant, underscores KAB's advanced technical capabilities in executing complex infrastructure projects.
Furthermore, the PETRONAS LNG Project at Pengerang was awarded to KAB Energy Holdings Sdn. Bhd. (KABEH) by PGB involves expanding utilities and enhancing infrastructure for a Floating Storage Unit (FSU). KAB entrusted with overseeing all project aspects from pre-construction to commissioning.
A Milestone in ESG Excellence and Collaboration with Bursa Malaysia
1 of the 11 new inclusions in 2023
Environmental, social, and governance (ESG) principles havesbeen recognised with its inclusion in the FTSE4Good Bursa Malaysia Index (F4GBM) and FTSE4Good Bursa Malaysia Shariah Index (F4GBMS) with three-star ratings for 3 consecutive years since 2021. This journey to ESG excellence was accomplished in less than 3 years.
Partnership with Bursa Malaysia to further its sustainability initiatives
KAB's proactive sustainability efforts have caught Bursa Malaysia's attention, aligning with its ESG promotion initiatives. Both are jointly advancing sustainability in the Malaysian capital market.
Exploring Sustainability Mechanisms and Adoption for Application
Recognising the importance of new mechanisms for global and national decarbonisation, KAB actively explored and integrated Renewable Energy Certificates (RECs) and Carbon Credits (CCs). As noted in previous articles, RECs offer a straightforward and cost-effective method for companies to offset carbon emissions generated by their activities and manage mitigation efforts while meeting compliance standards.
KAB has successfully navigating these mechanisms, aligning with Malaysia's National Energy Transition Roadmap (NETR) and the global shift towards sustainable energy practices.
Motives Beyond Financial Gain
In a bid to accelerate efforts to diversify the energy supply mix in Malaysia and the broader Southeast Asian region with an increased supply of clean energy, KAB has enhanced its role in the sustainable energy market by becoming a registered market participant for REC trading. KAB now manages the RECs portfolio for its client, a leading provider of aircraft landing and braking systems. With the recent traction gained by these mechanisms, KAB's initiative extends beyond mere integration and revenue generation. It's commendable for its ability to offering viable options and facilitating their deployment effectively. Ultimately, this contributes to witnessing clients advance in their transition to cleaner and more sustainable energy practices.
On the same note, in the previous article, KAB delved deeper into the utilisation of RECs to support the implementation of hydropower projects, substantiating the discussion with references to its hydro asset and identified hydro project. KAB displayed consistent prudent decision-making and understanding of its strategic growth initiatives. With a focus on keeping pace with Bursa Malaysia's ongoing efforts to enhance climate action, KAB shares a similar goal with the nation to strengthen the integration of hydropower RECs into the portfolio of high-quality carbon attributes. Trusting in the significant potential of hydropower generation of RECs, KAB anticipates improved facilitation of cross-border trading of hydropower RECs.
Established Presence through Excellent Recognition Being listed by Energy Business Review as 1 of the Top 10 Energy Sustainability Solutions Provider in APAC 2024 is a proud acknowledgment of KAB's presence in the energy industry.
Robust Order Book and Strategic Developments
● As of December 31, 2023, the combined order book for KAB's Engineering and SES businesses stood at a robust RM939.0 million, along with pending tenders amounting to a substantial RM3.0 billion.
Revenue Growth and Strategic Shift
● With a record-breaking revenue of RM199.4 million, representing a notable increase of 6.6% from the previous financial year's revenue of RM187.0 million. This impressive growth is primarily attributed to KAB's strategic shift towards its SES business. The Group's targeted acquisitions within the renewable energy sector have fueled growth and expanded its market presence, contributing to this revenue surge.
Enhanced Gross Profit and Profitability
● The Group's gross profit for FY2023 increased to RM41.4 million, representing a substantial 47.5% growth from FY2022's RM28.1 million. This increase indicates improved operational efficiency and better pricing strategies. The Group's strategic focus on higher-margin SES projects, particularly those generating profits from energy solutions on a concession and recurring basis, has played a pivotal role in enhancing profitability and providing long-term solid high-margin returns.
Record-Breaking Profit After Tax
The Profit After Tax (PAT) for FY2023 soared to a new record of RM28.9 million, marking an exponential growth of more than tenfold from the previous year. This surge in PAT was primarily driven by the impressive growth in the SES segment results, which increased by 862.6% to RM36.1 million.
As KAB continues its journey from a traditional engineering services provider to a leader in SES, the financial results of FY2023 reflect the fruits of this transformative strategy.
CONCLUSION
In conclusion, KAB’s remarkable journey from a traditional engineering services provider to a leading SES powerhouse is a testament to its commitment to innovation, sustainability, and excellence. The recognition as one of the Top 10 Energy Sustainability Solutions Providers in APAC 2024 by Energy Business Review, along with its notable achievements in ESG excellence and strategic partnerships, underscores KAB's pivotal role in driving the energy transition in Malaysia and the broader Southeast Asian region. As KAB continues to expand its SES portfolio and contribute to the diversification of the energy supply mix, its robust order book, revenue growth, and record-breaking profitability highlight the successful execution of its strategic initiatives. KAB's journey is not just about financial gain but about making a positive impact on the environment and society, showcasing the power of sustainable energy solutions in shaping a greener and more sustainable future.
For business inquiries and development opportunities, email:
More in News
The storage tank market is experiencing significant growth and innovation due to the growing demand for reliable, efficient storage solutions in various industries.
The global storage tank market is growing with increased demand for strong solutions across industries. This is mainly due to technological advancements, changes in industry requirements, and a growing focus on safety and sustainability.
The market for storage tanks is at a crossroads, with tremendous room for expansion and many creative alternatives. The demand for dependable and practical storage solutions will continue to drive the industry and change the storage infrastructure landscape as industries worldwide grow and change.
Market Growth and Drivers
The storage tank market, estimated to be worth USD 26 billion in 2023, is anticipated to expand at a compound annual growth rate (CAGR) of more than 5.1% from 2024 to 2032. The primary cause of this expansion is the increasing need for oil and gas storage, fueled by increased exploration efforts and production levels. By 2028, the demand for oil alone is predicted to rise by 6% to 105.7 million barrels per day.
Technological Innovations
The market benefits from introducing innovative materials and construction techniques that enhance storage tanks' durability and safety standards. Remote monitoring capabilities are becoming increasingly prevalent, allowing operators to manage and monitor storage tank facilities from a distance.
Challenges and Opportunities
The market for storage tanks is expected to grow. However, there are still obstacles to overcome, including high upfront costs and a changing regulatory environment with changing safety and environmental regulations. Notwithstanding, these obstacles also offer prospects for expansion and novelty as enterprises endeavor to manage the financial feasibility of ventures and conform to evolving statutes.
Industry Applications
The expansion of the oil and gas, food and beverage, and power industries drives the global storage tank market. The need for more efficient solutions, particularly in exploring shale gas and tight oil fields, prompts the demand for storage tanks. The growing focus on water conservation and wastewater treatment also contributes to the market expansionists.
Sustainability and Environmental Considerations
Sustainability is starting to matter in the storage tank business. Businesses are looking into eco-friendly materials and designs to reduce their carbon footprints, which are connected with storage solutions since there is a growing emphasis on minimizing environmental effects.
Future Outlook
The storage tank market is set to continue its growth trajectory with a strong emphasis on safety, compliance, and technological innovation. Integrating advanced materials, intelligent monitoring systems, and sustainable practices will likely shape the future of storage solutions, ensuring that they meet the ever-growing demands of various industries.
...Read more
The construction, maintenance, and operation of storage tanks create jobs and stimulate local economies.
Storage tanks play a crucial role in energy infrastructure, ensuring the efficient and reliable supply of energy resources such as crude oil, refined petroleum products, and natural gas liquids. They manage supply and demand to support economic stability and maintain and enhance global energy systems. Their multifaceted role in maintaining and improving energy systems identifies their importance for maintaining and strengthening global energy systems.
Storage tanks allow their release during peak consumption times, stabilizing supply and mitigating the risk of shortages. They are critical components in the refining and processing of hydrocarbons. In refineries, tanks store raw materials like crude oil before processing. Post-refinement, they hold finished products such as gasoline, diesel, and jet fuel. Intermediate storage is crucial for the smooth operation of refineries, allowing for the continuous and efficient processing of crude oil into various end products. The ability to store intermediate and final products ensures operational flexibility and efficiency.
The global trade of energy resources heavily relies on storage tanks. These tanks serve as temporary holding facilities for oil and gas at ports and terminals, facilitating the transfer of energy resources between production sites, transportation vessels, and distribution networks. Storage tanks at strategic locations, like pipeline hubs and shipping ports, enable the efficient movement of energy resources across regions and countries. The logistical support is vital for maintaining energy flow in international trade. Storage tanks' economic impact extends beyond energy stability.
Energy security is a significant concern for nations worldwide, and storage tanks are crucial in enhancing it. Many countries maintain strategic petroleum reserves, consisting of large storage tanks filled with crude oil, to safeguard against supply disruptions. The reserves can be tapped in emergencies, like geopolitical conflicts or natural disasters, ensuring a continuous energy supply. Storage tanks buffer against external shocks and contribute to national energy security and economic stability. Storage tanks are becoming increasingly important in the renewable energy sector. Tanks store biofuels produced from organic materials as an alternative to fossil fuels.
Large-scale energy storage solutions, like hydrogen storage tanks, are being developed to support integrating renewable energy into the grid. Modern storage tanks are designed with advanced technologies to minimize environmental impact and enhance safety. Double-walled tanks, leak detection systems, and secondary containment measures are implemented to prevent spills and contamination. Vapor recovery systems capture volatile organic compounds (VOCs) emissions, reducing air pollution. The innovations ensure that storage tanks operate safely and sustainably, protecting the environment and surrounding communities.
Industries reliant on a stable energy supply, like manufacturing and transportation, benefit directly from the reliable performance of storage tanks. Storage tanks are indispensable to the energy infrastructure, providing critical support for energy storage, supply management, refining, trade, and security. Their role in integrating renewable energy and maintaining environmental safety underscores their importance in the evolving energy landscape. The significance of storage tanks in ensuring a stable, efficient, and secure energy supply becomes ever more apparent. Investing in advanced storage solutions will sustain and enhance energy systems worldwide.
...Read more
The tanks enhance energy system flexibility and reliability and contribute to the transition to a resilient energy future.
Thermal storage tanks are essential to global energy systems, addressing the imbalance between energy supply and demand. They store surplus thermal energy at low demand or times of high renewable energy generation, which would otherwise go to waste and not be used efficiently to tackle the issue of intermittency. They can be primarily used in conjunction with concentrated solar power plants.
Solar radiation is intermittent, varying throughout the day, and affected by weather conditions. Thermal storage tanks enable CSP plants to store excess heat generated during high solar irradiance periods and utilize it later to generate electricity during periods of low or no sunlight, providing a more reliable and dispatchable renewable energy source. Thermal storage tanks can enhance the efficiency of conventional power plants by enabling them to operate more flexibly. Another promising application of thermal storage tanks is the electrification of heating and cooling systems.
Thermal storage tanks can be integrated into district heating and cooling systems, where they store excess heat or cold generated by combined heat and power (CHP) plants, industrial processes, or waste heat recovery systems. During periods of low demand, such as at night or in mild weather, excess thermal energy can be stored in these tanks and later used to meet peak demand or provide heating or cooling when the primary energy source is unavailable or insufficient. These plants can operate at their optimal efficiency levels for longer durations, reducing fuel consumption and emissions.
Thermal storage tanks offer a versatile and efficient solution to the energy sector's challenges, including integrating renewable energy sources, electrifying heating and cooling systems, and optimizing conventional power plants. In conventional power plants, such as those fueled by natural gas or coal, ramping up and down to match fluctuating demand can be inefficient and costly. As countries strive to decarbonize their energy sectors, there is increasing interest in electrifying heating and cooling processes currently reliant on fossil fuels. The intermittency of renewable electricity sources poses a challenge for reliably meeting heating and cooling demand.
Thermal storage tanks can store excess electricity and use it to provide heating or cooling when needed, increasing the efficiency and reliability of electrified heating and cooling systems. In addition to improving energy system efficiency and reliability, thermal storage tanks can provide grid services such as peak shaving, load leveling, and frequency regulation. By strategically discharging stored thermal energy during periods of peak demand or grid instability, these tanks can alleviate stress on the grid and help integrate higher levels of renewable energy.
...Read more
The energy sector has always relied on conventional business models where utility companies generate, distribute, and sell electricity to consumers. However, the rise of renewable energy sources, smart grid technologies, and consumer demand for sustainability have initiated a paradigm shift. Among the innovative solutions reshaping this landscape is Energy as a Service (EaaS), an emerging business model transforming how energy is delivered, consumed, and managed.
EaaS is remodeling the energy sector by offering comprehensive solutions beyond traditional utility models. At its core, EaaS encompasses several key components. Energy supply management allows providers to source energy from various channels, including renewable sources such as solar, wind, and biomass, enabling clients to procure green energy without direct investments in infrastructure. Energy efficiency and optimization initiatives include real-time energy monitoring, audits, and advanced efficiency technologies that minimize waste while maximizing output. Demand response services help organizations manage peak loads through energy storage systems and smart grid integration, ensuring a dynamic balance between supply and consumption. Sustainability consulting supports businesses in meeting regulatory requirements and consumer expectations by providing expertise in carbon neutrality strategies, clean energy utilization, and sustainability reporting. Additionally, financing and risk management eliminate upfront capital expenditures, as EaaS providers invest in necessary infrastructure and charge customers based on results or service levels, mitigating financial risk.
EaaS fundamentally transforms the utility business model by driving decentralization, enhancing customer-centric services, integrating smart technologies, promoting renewable energy adoption, and diversifying revenue streams. Unlike traditional centralized energy production and distribution, EaaS leverages distributed energy resources (DERs) such as rooftop solar panels, microgrids, and battery storage to reduce reliance on large-scale infrastructure. This decentralization allows for localized energy generation and greater resilience. Utility companies are also shifting from being mere energy suppliers to service providers, offering tailored energy management solutions to meet diverse client needs. Integrating smart technologies—including IoT devices, AI-driven analytics, and predictive maintenance tools—enhances operational efficiency, reduces costs, and optimizes energy consumption. Moreover, EaaS accelerates renewable energy adoption by enabling businesses and households to access green energy without significant capital expenditures, fostering a more sustainable energy landscape. Lastly, it facilitates revenue diversification for utility providers, moving beyond traditional energy sales toward stable income sources through subscriptions, service fees, and performance-based contracts. Through these advancements, EaaS redefines how energy is produced, managed, and consumed in the modern era.
As digitalization and decentralization continue to reshape the energy sector, the prospects for EaaS are bright. Policymakers are increasingly pushing for renewable energy adoption and efficiency, creating fertile ground for EaaS providers to expand their offerings. Moreover, the rise of EVs and energy storage technologies will drive demand for integrated energy services.
EaaS represents a groundbreaking departure from traditional utility business models. By focusing on tailored energy solutions, supporting sustainability goals, and leveraging technological advancements, EaaS offers providers and customers new ways to thrive in the evolving energy ecosystem. While challenges remain, the potential to create a more efficient, decentralized, and greener energy future makes EaaS a compelling model for future generations.
...Read more
