KUCHING (Dec 2): Sarawak has achieved another milestone in its energy transition efforts collaborating with Italy’s sustainable technology solutions provider to develop a large-capacity power plant in the state.

In a statement on Monday, ACACIA Power Sdn Bhd, established in 2024, said it is spearheading the development of a renewable energy project using acacia wood pellets and biomass feedstock sourced locally.

The plan is to build a power plant of up to 500 megawatts (MW) using Sarawak’s abundant natural resources, the statement said.

Sarawak Premier Tan Sri Abang Johari Tun Openg said the project between ACACIA Power, a subsidiary of Permodalan Satok Bhd, and NEXTCHEM SpA aims to use and transform Sarawak’s abundant natural resources into a sustainable energy powerhouse.

“I am sure the Maire Group (that owns NextChem) can innovate through new technology. With artificial intelligence and its vast experience, it can improve the technology resulting in high productivity.

“Together with our experience in cultivating acacia, we can meet the challenge of global climate change,” he said at the signing ceremony between ACACIA Power and NextChem on Monday.

He said the cooperation aims to combat climate change, and underscores Sarawak’s commitment to cutting carbon emissions by 2030 while advancing its post-COVID-19 development strategy.

Meanwhile, Italian Ambassador to Malaysia Massimo Rustico said Italy’s Finance and Economy Ministry through its Export Credit Agency is ready to financially support Sarawak’s decarbonisation projects.

“Our delegates will meet Sarawak’s finance secretariat to discuss ways to support you (Abang Johari’s initiatives) financially. Money is never enough and there are so many things that have to be done, but we are here to support you because decarbonisation is a priority for my government and all the governments today.”