Environmental-Friendly Pioneer with ENCO Systems

ENCO System Sdn. Bhd started in 1975 as a service company for Boiler Industry includes business activities such as installation of new boilers, re-conditioning of used boilers, boiler servicing, and general engineering contracting works for all sectors of industry requiring process heating.
The factory is full equipped with modern equipment, including the latest Plate Rollers, Automatic Welding Machines, great skill welders and 30Tonnes Overhead Cranes.

Danish Partners

Allen Ng, ENCO’s Managing Director, has built a strategic co-operation partnership with a number of companies from Denmark in hope to meet a high standard required in a Boiler Industry. In 1991, Allen was introduced to the first Danish Company NORDFAB, a filter company which was also the first boiler in Malaysia ENCO had sold under its license but now NORDFAB is no longer in Business in Malaysia or either in Denmark.
Later in 1993 NORDFAB introduced Allen to Danstoker which is known worldwide since 1935 for its high-performance dependable modern packaged boilers and accessories, used in district heating plants, public institutions and in the industry.
In collaboration with the client or consulting engineers Danstoker is able to supply boiler units with equipment and accessories to suit individual specifications.
“We make everything in Malaysia, we cannot buy boilers directly from Danstoker because it is so far away and the cost is very high,” says Allen NG, who has been in the boiler and energy business since 1975.
“We only have a license agreement with them to make boilers, so they give us the drawings and we manufacture the boiler here.”
“The advantage for both companies and countries is that we bring down the cost by manufacture it here, that way we can be more competitive,” continues Allen.
 “Malaysia can also benefit from Danish technology because Denmark is very well known for their environmental product, it’s a win-win for both countries, Malaysia would benefit on the efficiency and Denmark would make some money out of it.”
When there were more demands for bigger boilers, Danstoker recommended its sister company Babcock & Wilcox Vølund to Allen in 1997. That was when Large Biomass Plants entered ENCO business. In the same year ENCO also signed a contract with Barker Jørgensen A/S for Industrial Fans.

One Among Great Achievements

In 2005 ENCO was a supplier for the world’s first highest cogeneration efficiency from palm oil residues.
“It was the first palm-EFB-fired grid-connected cogeneration plant in the world to produce 80tonnes per hour of steam at 66.5 bar (g) and 402°C. It was also the first EFB-fired boiler employing the well-proven vibrating membrane grate in South-East Asia.” He adds.
The boiler pressure parts, as well as the vibrating membrane grates, were designed by the world-renowned Babcock & Wilcox Vølund (BWV), but were fully fabricated locally at ENCO’s modern factory under the supervision of BWV and the RW TUV, the German third party inspector. The boiler materials were imported from Germany and France, while the high pressure boiler fittings, and instrumentation, were also sourced from Europe.

Environmental Concerns

Apart from the modern Packaged Boilers, ENCO also manufacture Fully-Automatic Boiler System utilizing Biomass Fuel such as Palm Fibres and Wood –Waste for the Palm Oil Mills and Wood Industry. These boiler systems from Denmark ensure the minimum dust paniculate emissions, which is well below the current DOE requirements with no black smoke.
ENCO Systems now is focused on Biomass plants more than Boilers because using biomass from renewable sources such as plants for heat and power production instead of fossil fuels can reduce greenhouse gas emission.
“Today the world is asking for more environmental control,” says Allen.
“We want to build a plant where we can maintain a good environment. We are actually bringing down the heat in the world with our Biomass Plant and environmental-friendly designed boilers”

The first CDM project in Malaysia with ENCO Systems

This first Malaysian CDM (Clean Development Mechanism) project is the “Biomass Energy Plant – Lumut”, which is developed by ENCO Energy for the PGEO palm oil refinery in Lumut. The annex 1 partner, and thus the purchaser of the CDM credits, is the Danish Ministry of Foreign Affairs. The project is expected to reduce 200,000 tons of CO2 during the period 2006-2012.
CDM is one of the flexible mechanisms by which the Danish government seeks to honour its commitment under the Kyoto Protocol of reducing greenhouse gas emissions by 21 % before 2012 (compared to 1990 level). Malaysia is one of Denmark’s primary partners in combating climate changes.
The registration of this project is an important milestone for CDM development in Malaysia and proves that CDM is a reality and can support the development of sustainable and environmentally sound projects for the benefit of Malaysia and the global climate.


ENCO Systems is trying to the use of sustainable renewable energy sources in an efficient manner and is in line with Malaysia’s development policy of renewable energy as a fifth fuel. This will lead to greater self-sufficiency of fuel for the energy sector.
“Malaysian Government has been promoting more of this environmental concern,” says Allen.
“By saying 5% of our country’s energy must come from the biomass but we haven’t been able to archive that under our eight Malaysian plants.”
ENCO System is trying to lead the reduction of subsidized fuel oil for the refinery and lead to reduction of gas and oil subsidies in the Malaysian power sector, as it will produce its own power and displace conventional power from the grid.
“The country’s depleting fossil fuel reserves will be replaced by Renewable Fuels such as Palm Fibres, Wood-Waste and other Biomass Fuels for the production of Electrical Energy in the near future.” continues Allen.

Economic Efficiency

ENCO Systems is well known for its efficiency design compare to other products, with an investment plan to pay back in three years.
As a long-term effect this will improve the efficiency of the available biomass boilers in the local market. Furthermore, the project will strengthen Malaysia’s regional position for the biomass technology market.
ENCO’s projects will lead to economic sustainability, as the fuel source is a sustainable, indigenous resource, which reduces fuel imports and negative impact on the foreign exchange. ENCO System also brings a positive impact on the economic performance of the palm oil refinery as an energy production will become more reliable and efficient and eliminate the risks of fluctuating oil prices, which will enable a more economic reliable production in general.

Future for ENCO Systems

ENCO Systems is now talking to another Danish company, Filcon A/S, for Fluegas Cleaning & Filter System.
“We want to make our boilers more Environmental-Friendly, so we are trying to get a contract with Filcon for a better cleaning system,” explains Allen.
“Their managing director is coming here in May, hopefully we will be able to reach the same standard as in Denmark, and this is the next step that we are looking for.”

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