TOPIC 'Bioenergy' on Oct 27, 2008 (CET)
Malaysian Bio-Energy Expected To Contribute RM20 Million Annually
An oil palm plantation is anticipating its bio-energy business segment will reach an annual level of revenue input totaling approximately RM20 million by the year 2011. This amount of capital is expected to come from selling electricity to the Sabah Electricity Sdn Bhd (SESB) as well as carbon credits received from the reduction of emissions. The plantation, Cepatwawasan Group Bhd, is preparing to execute a renewable purchase agreement (REPA) with the electricity company early in 2009.
Cepatwawasan Group Bhd’s two bio-energy projects will utilize the by-products, essentially the waste that is created from the process of milling palm oil, and make electricity from it. The two projects have been sanctioned by the Energy, Water, and Communications Ministry. The goal of turning to “green power” and utilizing materials that would normally have been discarded to increase power to the country’s electricity grid has a high probability of success.
The Biogas Energy Plant is anticipated to supply 3 MW of power to the grid at SESB. The Biomass Energy Plant is expected to export 10 MW of power to SESB’s grid. These projects at the Prolific Yield Palm Oil Mill, located in Sandakan, Sabah, are planned to be registered as a Clean Development Mechanism (CDM) with the United Nations Framework Convention for Climate Change, as well as the Kyoto Protocol. Construction is set to begin mid-2009 and completion is anticipated by 2010. The total cost of the plants is projected to be RM80 million and will primarily be funded through the use of REPA and internal funds.
Svend Waever, the Danish Ambassador to Malaysia, presided over a recent ceremony where a CDM was signed by the Mistal Engineering Sdn Bhd (which is a subsidiary of Cepatwawasan) and the Danish Ministry of Climate and Energy. Due to the signing of this agreement, Denmark will be better able to help Danish businesses who wish to enter the Malaysian market. Numerous opportunities exist in Malaysia for CMD projects.
Sherry Irvin
on behalf of the
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