MALAKOFF Corp Bhd’s subsidiary, Green Biogas Sdn Bhd, has entered into a renewable-energy power purchase agreement (REPPA) with Tenaga Nasional Bhd (TNB) over the sale of energy from Green Biogas’ future power plant to the national utility firm.
In a filing to Bursa Malaysia last week, Malakoff said Green Biogas will sell electricity generated from its proposed 2.4MW Sungai Kachur Biogas Power Plant in Kota Tinggi, Johor, for 21 years.
“Green Biogas has participated in a competitive feed-in tariff e-bidding exercise and submitted its bid for the project on Nov 30, 2018.
“The government, through Sustainable Energy Development Authority Malaysia (SEDA Malaysia), had on Jan 29 announced that it had accepted Green Biogas’ bid as one of the successful bidders.
“Pursuant to the above and as required by SEDA Malaysia, Green Biogas has entered into the REPPA with TNB for the sale of energy generated from the project to TNB for a period of 21 years,” it said.
The project is expected to have no material impact on the earnings and net assets of Malakoff group for the financial year ending Dec 31, 2019.
For the full year of 2018, Malakoff registered a net profit of RM274.43 million, lower than the RM295.93 million recorded in 2017.
However, revenue for the 12 months rose 3.1% to RM7.35 billion from RM7.13 billion previously.
The group noted that the decrease in profit was due to lower capacity payment recorded by Segari Energy Ventures Sdn Bhd, given the tariff reduction and absence of Tanjung Bin Energy Sdn Bhd’s compensation payment received from the dispute settlement with Japan’s IHI Corp over its boiler failure.
Meanwhile, the group’s revenue increased as a result of higher energy payment recorded by both its coal plants.
However, the hike in natural gas tariff was partially offset by Segari Energy Ventures’ lower capacity payment.
In February, Malakoff CEO Datuk Ahmad Fuaad Mohd Kenali (picture) said the company will continue to focus on improving the reliability and efficiency of its assets, especially the Tanjung Bin Energy’s power plant.
“The plant is scheduled for maintenance and rectification works in the first quarter (1Q) and 2Q of this year, to address and resolve its operational challenges.
“In line with the government’s greater push for RE, Malakoff is currently exploring opportunities in the RE sector particularly on large-scale solar (LSS), hydro, biogas and waste to- energy (WTE) projects.
“The group will also be participating in the government’s open tender for the third round of the 500MW LSS3 project which was announced recently,” he added.
Sumber: The Malaysian Reserve