KUALA LUMPUR: Nextgreen Global Bhd (NGGB) has inked a partnership with IOI Corp Bhd unit IOI Paper Pulp Sdn Bhd to develop the nation’s first large scale zero-waste paper pulp plant in NGGB’s 410-acre Green Technology Park (GTP)in Pekan, Pahang.
In a statement, NGGB said the parties will establish a private limited company, Nextgreen IOI Pulp Sdn Bhd, which will be 55% held by NGGB and 45% by IOI.
Nextgreen IOI Pulp will develop and operate a paper pulp production facility, which will have an initial capacity of 100,000 tonnes per annum of chemical bleached pulp made from oil palm empty fruit bunches (EFB) using NGGB’s patented Preconditioning Refiner Chemical-Recycle Bleached Mechanised Pulp (PRC-RBMP) technology.
The plant will transform agricultural waste like EFB, a biomass by-product waste from oil palm industries which is typically unutilised, is transformed into green and sustainable products such as wood-free paper, tissue paper, premium packaging paper and pulp moulded packaging.
NGGB said the development phase will take 18 to 24 months, at a cost of about RM600mil.
“By adopting the waste-to-value concept, this bio-integrated zero waste process ensures that by-products from every part of the pulp production process is fully utilised through conversion into green products and renewable energy in a closed-loop system.
“This collaborative venture unifies our proactive ESG measures, contributing actively to the nation’s efforts to achieve the United Nations Sustainable Development Goals,” said managing director Datuk Lim Thiam Huat.
IOI group managing director and chief executive Datuk Lee Yeow Chor added that the utilisation of palm-based biomass for value-added applications is an important activity within the circular economy.
“Together with our palm wood venture utilising oil palm trunks, this joint venture will help IOI to take significant strides towards achieving our group-wide Net Zero emissions target.”