45 SECTION 3 VALUE CREATION INTEGRATED ANNUAL REPORT 2025 RISE OF BIOMASS POWER AND WASTE-TO-ENERGY IN AGRICULTURE-DRIVEN MARKETS Agriculture-driven economies across Southeast Asia continued to accelerate the adoption of biomass energy in 2025, supported by abundant agricultural residues and strengthening renewable energy policy support across the region. The Southeast Asia biomass market was estimated at USD3.7 billion in 2023 and is projected to reach USD7.8 billion by 2030, representing a CAGR of 12%, driven by the availability of feedstocks such as palm oil residues, rice husk, and sugarcane bagasse, alongside rising regional electricity demand and decarbonisation targets.5 Malaysia and Indonesia continued to advance biomass and waste-to-energy deployment through renewable energy frameworks and biomass co-firing initiatives, while industrial decarbonisation strategies increasingly drove private sector interest in biomass-based power generation. As the sector matures, project sponsors are increasingly prioritising operational reliability, lifecycle service capability, and proven installation track records, favouring partners able to support biomass assets across their full operating lifecycle. • Bioenergy performance improved, delivering FY2025 revenue of RM266.5 million and normalised PBT of RM43.1 million, reflecting continued growth in the division’s core operations. • 74 steam turbines delivered in FY2025, increasing the Group’s global installed base to over 1,800 turbines and broadening the installed platform for future after-sales services. • Wasco Greenergy was listed on Bursa Malaysia, with the Bioenergy Division transitioning into an independently listed entity on 11 December 2025, providing direct capital market access to support the division’s next phase of growth. • The after-sales service network was expanded, particularly in Indonesia, supporting long-term system reliability and strengthening customer engagement across the growing installed base. These developments position the Group to support the continued growth of biomass power and wasteto-energy solutions across agriculture-driven economies. Market Impact: Wasco’s Responses: 5 Source: Grand View Research, Southeast Asia Biomass Market Size & Share Report, 2024. Available at: www.grandviewresearch.com 4 KEY MARKET TRENDS
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