Green & Smart Holdings - a renewable energy company generating power from biogas captured through the treatment of palm oil mill effluent in Malaysia - has reported progress on its second fully-owned biogas power plant.
Green & Smart said the 2.0MW Malpom plant located in Nibong Tebal, Penang, had received its certificate of initial operation date from the authorities and the company expected to receive the formal certificate of commercial operation date, which would allow the sale of power to Tenaga Nasional Berhad, the national utility company, at the full tariff rate, later this month.
Malpom is the company's first specialised self-contained lagoon-based system developed for mills with space constraints that prevent them from setting up a conventional biogas power plant.
The company's first fully-owned plant, the 2.0MW Kahang biogas plant, located in the state of Johor, which is a tank-based system, is generating power and being sold to the national utility company at the full tariff rate.
The company said it continued to focus on securing long-term financing facilities from local finance providers.
It said that as previously stated, its ability to advance the development of its secured projects is dependent on the availability of adequate funding and, due to financial constraints, progress was slower than initially expected on a number of projects, in particular, those of Concord Green Energy, an associated company of Green & Smart, and the other five fully-owned biogas power plants.
It said that as a result, the company expects to report revenues for the full year ended 30 Sep 2017 of approximately RM45 million.
The company said it was in advanced negotiations to secure funding which would enable it to accelerate its projects in the current financial year. It said that Megagreen Energy, another associated company, continued to progress its application for the IODs of the five completed Feed-in-Tariff approved biogas power plants.
It said once the COD was received, the company anticipates revenue from the profit distribution through sale of power by these plants, as a result of its equity stake in MGE.
Chief executive Saravanan Rasaratnam said: 'We are incredibly excited that our second fully-owned biogas power plant will soon commence power sales at the full tariff rate to the national grid and we eagerly await receipt of the COD.
'This specialised lagoon system has been optimised to maximise efficiency, which will enable a reduction in operating costs.
' While the speed of development on some of the other projects is less than initially expected, we are in advanced funding negotiations that will enable us to make significant progress and we remain confident of delivering on our goal of becoming the largest provider of biogas-based renewable energy in Malaysia.'