Golden Pharos Bhd has announced a new venture to develop a biocharBiochar is a carbon-rich material created from biomass decomposition in low-oxygen conditions. It has important applications in environmental remediation, soil improvement, agriculture, carbon sequestration, energy storage, and sustainable materials, promoting efficiency and reducing waste in various contexts while addressing climate change challenges. More production facility in Dungun, Terengganu, marking a strategic move to diversify its business into the bio-economy. The company has appointed engineering firm GK Vest Sdn Bhd as its implementing partner and project operator for the facility, which will be built on a 1.19-acre plot owned by Golden Pharos’ subsidiary, GP Plywood Sdn Bhd. This project is a notable development for the company, leveraging its existing resources to create a new income stream.

The partnership is structured as a revenue-sharing agreement, with GK Vest responsible for securing the necessary capital and operational funding. Under the terms, GK Vest will be entitled to 80% of the project’s net revenue, while GP Plywood will receive the remaining 20%. The agreement also stipulates that GK Vest must have the facility operationally ready by Aug 31, 2026. GP Plywood, in turn, will facilitate the necessary permits and provide the land for the plant. A key part of GK Vest’s role will be to oversee the carbon programme administration and the sale of related environmental products, indicating the project’s focus on leveraging carbon markets.

Golden Pharos views the project as a significant opportunity due to its ready access to forestry residues from its various subsidiaries. The company states that these previously underutilized residues can be converted into high-value biochar, positioning the group to tap into both domestic and international markets. This initiative not only provides a new and viable business opportunity but also aligns with the principles of a circular economy by transforming waste into a valuable, marketable product.

SOURCE: Golden Pharos to develop biochar plant in Dungun in revenue-sharing deal