AmBank Islamic Provides RM285 Million Green Financing for Resource Recovery and Disposal Complex in Pengerang, Johor
AmBank Islamic Bhd has announced a groundbreaking RM285 million green financing for Econas Resource To Energy Sdn Bhd (ER2E) to develop the Resource Recovery and Disposal Complex (RRDC) and Resource to Energy-Scheduled Waste (R2E-SW) in Pengerang, Johor. This initiative marks a significant step towards sustainable waste management in Malaysia, particularly in the strategic development area of Pengerang Integrated Petroleum Complex (PIPC) at the southern hub of Malaysia’s downstream oil and gas industries.
The project will enable ER2E to process and dispose of up to 150,000 tonnes per annum of scheduled waste, addressing the increasing demand for waste treatment and contributing to a cleaner environment. AmBank Islamic’s chief executive officer, Eqhwan Mokhzanee, expressed the bank’s commitment to fostering sustainable waste management solutions and contributing to a cleaner and safer environment.
ER2E’s project is expected to provide extensive socio-economic benefits for the surrounding population in Pengerang, Johor. In addition to better waste management, the initiative is anticipated to generate job opportunities and stimulate local business growth, attracting further development and investment to the area.
ER2E has already commenced construction of its Phase 1 facility, which includes pyrolysis, microwave, solidification, and secured landfill, with an expected business start date in the third quarter of 2024. Phase 2 will involve the construction of the R2E-SW incinerator plant, aimed at generating electricity from burning scheduled waste, with full operational integration targeted by the third quarter of 2026.
ER2E’s executive chairman, Datuk Mohd Shafiee Mohd Sanip, expressed his delight at AmBank Islamic’s commitment to the project, noting that it will be a catalyst for the business community in Pengerang. This initiative represents a significant environmental and economic opportunity for Malaysia, paving the way for a more sustainable future.
