Eksons invested RM25 million in a 3 MW biomass power plant to replace the diesel generators in its Tawau plywood mill. From the output of 3MW of power and 25 MT per hour of steam is supplied to the Tawau mill. The biomass power plant which operates under Bahagaya Sdn Bhd was commissioned in June 2007.
The biomass power plant is located in Tawau, alongside the plywood plant. This environmentally friendly power plant is fuelled by wood chips made from wood waste from its plywood mills. This way, the Group is able to contribute toward the reduction in emission of green house gases. In addition to that, the Group will also benefit greatly from a substantial reduction in utility cost.
If this project is sanctioned by the United Nations Framework Convention on Climate Change (UNFCCC) as an approved green house gas emission reduction programme, Eksons, as the project owner, will be entitled to claim for Certified Emission Reductions (CER) under the Kyoto Protocol Clean Development Mechanism, or commonly known as Carbon Credit.