KUALA LUMPUR (Nov 9): Engineering and energy solutions provider Kejuruteraan Asastera Bhd (KAB) is expanding its sustainable energy solutions (SES) segment through the proposed acquisition of the entire equity of Future Biomass Gasification Sdn Bhd (FBG) for RM15 million.
In a Bursa Malaysia filing on Wednesday (Nov 9), KAB said FBG, a wholly owned subsidiary of Future NRG Sdn Bhd (FNSB), owns a biogas power plant in Kedah with an installed capacity of 2.4 megawatt.
KAB said it would benefit from long-term recurring income via FBG’s existing renewable energy power purchase agreement (REPPA) with Tenaga Nasional Bhd (TNB).
It said the REPPA is effective for 16 years from March 2018 until March 2034, which enables FBG to supply power to the national grid.
KAB managing director Datuk Lai Keng Onn said the addition of the first biogas power plant via the proposed acquisition of FBG will broaden KAB’s portfolio of SES assets which currently comprises co-generation and waste-heat-recovery plants as well as solar photovoltaic systems.
“The biogas industry has great untapped potential in Malaysia, given the vast availability of palm oil effluent as fuel, and we aim to help Malaysia and other countries in the region achieve their renewable energy goals.
“The plant would also contribute to building a stable stream of long-term income for the group,” said Lai.
At the midday break on Wednesday, KAB dipped 2.08% or one sen to 47 sen with 13.74 million shares done.