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Green Power Revolution: MINGHUNG Commerce Powers Mieco Group with 56MW Thermal Energy Hub

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Green Power Revolution: MINGHUNG Commerce Powers Mieco Group with 56MW Thermal Energy Hub



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In 2017, at the Kertau Industrial Zone in Pahang, Malaysia, a sprawling modern factory operated at full capacity. The massive thermal energy center hummed steadily, channeling heat through an intricate pipeline network to every production stage. This was Mieco Group’s flagship production base—and MINGHUNG Commerce’s benchmark project in Southeast Asia: the 56MW Thermal Energy Center for Wood-Based Panel Production.  


Rubberwood raw materials were unloaded systematically, undergoing crushing, drying, gluing, forming, and hot-pressing before emerging as high-quality particleboard. In the hot-pressing section, temperatures were precisely controlled at 195°C under 350psi pressure, where the thermal center’s stable operation ensured product consistency and manufacturing efficiency.  


1. Project Background & Mieco Group Introduction  


Mieco Group, Malaysia’s largest dedicated wood-based panel manufacturer, has been an industry leader in Asia-Pacific since its 1972 founding. A subsidiary of Bintang Layar Development Sdn Bhd and listed on Bursa Malaysia (1998), Mieco operates two major production bases in Gebeng and Kertau (Pahang), with total annual capacity exceeding 1.2 million m³, including Asia-Pacific’s largest single particleboard line.  


Mieco’s technical prowess and scale are exceptional:  

(1 )International certifications: First Malaysian timber company awarded BS EN ISO 14001 (2004) and OHSAS 18001 (2005).  

(2) Product diversification: Evolved from basic particleboard to full-chain solutions including MFC, EBFC, PFC, and DIY furniture.  

(3 )Eco-innovation: Pioneered commercial Super E0 particleboard (2003) meeting Japan’s stringent F★★★★ formaldehyde standards.  


Facing 2017’s competitive pressures, Mieco launched an energy system upgrade —creating the opportunity for MINGHUNG’s involvement.  


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2. 2017 Malaysian Wood-Based Panel Market: Challenges & Opportunities  

Southeast Asia’s panel industry was transforming in 2017. While global demand for eco-friendly boards grew, regional overcapacity intensified competition. Malaysia faced critical challenges:  

(1) Supply-demand imbalance: Four new particleboard/MDF lines launched annually across Thailand/Vietnam/Indonesia, causing price collapses by late-2017.  

(2) Raw material crisis: Malaysia’s rubberwood became "Asia’s most expensive" with declining availability.  

(3) Stricter environmental policies: Mandated emission controls for formaldehyde/NMHC from drying/pressing processes.  


Conversely, Malaysia’s manufacturing investment climate remained robust:  

- 2017 approved manufacturing investments: RM197.1 billion (+8.9% YoY).  

- Foreign direct investment: RM39.2 billion (healthy despite slight YoY dip).  


"Malaysia’s economy remains resilient amid global uncertainties, supported by stable business fundamentals, skilled talent, strategic location, and efficient governance." — Mustapa Mohamed, Minister of International Trade and Industry  


3. Thermal Energy Project: Customized Energy Solution  

To address market challenges, Mieco invested in a modern, eco-efficient thermal energy center as core infrastructure for Kertau’s expansion. MINGHUNG secured the 56MW Thermal Energy Center contract in 2017, delivering turnkey design-equipment-installation services.  


3.1 Planning & Technical Solution  

The center would power Mieco’s new 640,000m³/year particleboard line while reducing costs and emissions. MINGHUNG’s circular economy solution utilized rubberwood processing residues:  


(1)Fuel flexibility: Custom combustion system for bark/sawdust/sander dust, resolving 80,000t/year waste disposal.  

(2)Multi-stage emissions control: Integrated wet scrubbing + electrostatic precipitation + plasma technology eliminated "white plume" pollution (dust <20mg/Nm³).  

(3)Smart control: DCS synchronized energy output with production loads (±1.5°C stability).  


3.2 Introduction to the 56-megawatt thermal energy center

    3.2.1  System Composition & Technical Parameters

Module

Core Configuration

Technical Parameters

Fuel Handling

Two-stage crusher + Airflow separator + Enclosed conveyor gallery

Capacity: 12t/h

Fuel spec: ≤30mm chips

Moisture tolerance: 35%-55%

Combustion

Inclined reciprocating grate boiler + High-temp cyclone separator

Grate area: 48㎡

Combustion temp: 850-1050℃

Thermal output: 56MW (peak)

Heat Exchange

Four-stage heat exchanger + Thermal oil circulation

Steam output: 80t/h (saturated steam 1.6MPa)

Oil temp: 280℃±5℃

Emission Control

Wet scrubber + Electrostatic precipitator + Low-temp plasma reactor

Particulates: <20mg/Nm³

NOx: <150mg/Nm³

VOC removal: ≥92%

Control System

DCS + Combustion Optimization Algorithm (BOA)

Temp control precision: ±1.5℃

Load adjustment response: <30s


    3.2.2 Core Technological Innovations

    (1)Tropical High-Moisture Fuel Adaptation  

    Pre-drying + Airflow Sorting integrated process for 45% avg moisture rubberwood waste:  

    150℃ waste heat pre-drying stabilizes fuel moisture at 35%  

     Airflow separator removes >99% sand/metal impurities  


    (2) Energy Cascade Utilization  

Temp Zone

Application

Energy Recovery

>350℃

Thermal oil (hot press)

0.42

150-350℃

Process steam (drying section)

0.33

80-150℃

Factory hot water/HVAC

0.16

Total Efficiency


0.915


    (3) White Plume Elimination  

  Three-stage treatment: Wet scrubbing + Electrostatic agglomeration + Plasma oxidation  

  Wet scrubber: Removes >90% particulates & water-soluble pollutants  

  Electrostatic agglomeration: Combines sub-micron particles into >10μm collectible particles  

  Plasma reactor: Decomposes formaldehyde/NMHC (>92% degradation)  


3.3 Implementation & Breakthroughs  

Despite tropical climate challenges, MINGHUNG completed construction in 10 months (30% faster than industry average) through modularization and parallel engineering:  


(1) Fuel preprocessing: "Two-stage crushing + airflow separation" enhanced fuel homogeneity, achieving 91.5% thermal efficiency.  

(2) Cascading heat recovery:  

 - >350°C: Thermal oil system  

 - 150-350°C: Veneer drying  

 - <150°C: Domestic hot water  

(3) Tropical cooling system: Optimized cooling towers ensured full-load operation in high humidity/heat.  


The operational center delivers 56MW thermal power (equivalent to 80t/h saturated steam), supporting both new and existing production lines.  


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4. Project Outcomes & Multidimensional Benefits  


MINGHUNG’s thermal center became a clean-production benchmark, delivering transformative results:  


4.1 Economic Benefits  

(1) Energy savings: Biomass substitution reduced natural gas consumption by ~70%, lowering energy costs 35-40% (RM12 million/year savings).  

(2) Maintenance reduction: Modular design cut annual upkeep costs by 25%.  

(3) Capacity growth: Enabled Kertau’s total output to reach 640,000m³/year—Asia-Pacific’s largest single particleboard line.  


4.2 Environmental Benefits  

(1) Waste valorization: Annually converts 80,000t of residues into energy, eliminating landfill needs.  

(2) Emission reductions:  

 - CO₂ reduction: 45,000t/year (equivalent to 750,000 trees)  

 - Dust: <20mg/Nm³ | NOx: <150mg/Nm³  

(3) Water conservation: 85% wastewater reuse rate saves 220,000t freshwater annually.  


"MINGHUNG’s solution didn’t just cut energy costs—it transformed us from polluter to environmental contributor. This system is our strongest sustainability credential." — Mieco Production Director  



5. Industry Leadership & Future Vision  


This project established replicable innovations for Southeast Asia’s panel industry:  

(1) Circular economy model: "Waste-for-energy" approach solves dual challenges of resource consumption and pollution.  

(2) Tropical technology adaptation: Proves European thermal tech can excel in Southeast Asia’s climate.  

(3) Eco-cost synergy: Redefines sustainable manufacturing by pairing environmental stewardship with economic gains.  



One production line. 80,000 tonnes of rubberwood waste consumed annually. Transformed into green energy powering Malaysia’s largest particleboard complex. MINGHUNG delivered not just a thermal center, but a circular economy blueprint—where every wood residue becomes a valuable energy resource.  


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Today at Mieco’s  plant, mountains of waste have vanished. In their place: an efficient, enclosed fuel processing facility. Real-time monitors display the 56MW center’s performance—91.5% thermal efficiency, <20mg/Nm³ particulate emissions, 45,000t annual carbon reduction. Behind these numbers: Malaysia’s determined stride toward green manufacturing.


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