Biogas projects are booming in Malaysia, according to one renewable energy developer.
Green & Smart Holdings plc (AIM: GSH), who generate power from biogas captured through the treatment of palm oil mill effluent, has seen a major upswing in operations.
Megagreen Energy (“MGE”), an associated company of Green & Smart, has already completed five biogas plants under engineering, procurement, construction and commissioning (“EPCC”) contracts with 6MW of total capacity.
Concord Green Energy (“CGE”), another associated company has an existing EPCC pipeline of at least another ten biogas plants with contracts for 12.5MW of capacity.
Completion of further EPCC contracts is expected in H2 2017.
Green & Smart has recently completed the commissioning and interconnection works for its second fully-owned biogas power plant, the 2.0MW Malpom plant located in Nibong Tebal, Penang.
The company is awaiting receipt of a certificate of initial operation date.
Green & Smart has also established a pipeline of projects that it will build, own and operate and work is scheduled to commence shortly on the Dupont (1.0MW) and Veetar (2.0MW) plants.
The firm has also commenced work under its EPCC contract with CGE on four greenfield biogas-based power generation plants to be constructed within the sites of four specified palm oil mills owned by Felda Palm Industries Sdn Bhd.
The plants are expected to be completed by year-end 2017.
Mr. Saravanan Rasaratnam, chief executive officer of Green & Smart, said: “We are pleased with our progress in developing our pipeline of wholly-owned and associated projects. We anticipate the completion of more EPCC contracts by year-end and our existing fully-owned biogas power plants will continue to provide power to the grid while we advance the construction of the new ones.
“Green & Smart remains one of the few fully-integrated providers and operators of biogas plants in Malaysia at a time when government regulation requires all palm oil mill operators to install biogas plants to capture greenhouse gases in the form of methane that would otherwise be released into the atmosphere.
“As a result, the Board continues to look to the future with confidence.”
