PETALING JAYA: CAM Resources Bhd's will be venturing into renewable energy segment via its wholly owned subsidiary Future Atlas Sdn Bhd (FASB), following a feed-in approval from the Sustainable Energy Development Authority Malaysia (SEDA) to sell renewable energy to Tenaga Nasional Bhd (TNB) for 16 years.
The group which is in the investment holding, manufacturing, trading and palm oil mill business is expected to ink a power purchase agreement (PPA) with TNB in August this year.
The group said its venture is to reduce the Greenhouse Gas emission impact of palm oil production from the generation of biogas from palm oil mill effluent and conversion of biogas as fuel into electricity; reduce the carbon footprint of FASB and the overall group of affiliated company; and derive income from the sale of renewable electrical power to the national grid.
FASB will commence supply of renewable energy from May 24, 2019 at a fixed feed-in tariff (FiT) rate of RM0.4669 per kWh for the next 16 years, under the SEDA feed-in tariff system.
In a filing with the stock exchange, CAM Resources' board of directors said that it will be constructing a 2MW biogas plant located in Taiping, Perak.
"The source of funding of the construction cost of renewable energy power plant will be internally-generated funds as well as bank borrowings. The breakdown of the sources of funding has yet to be determined," its board said.
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