KUALA LUMPUR (Feb 3): Cypark Resources Bhd (CRB) will operate a solid waste modular advanced recovery and treatment waste-to-energy (SMART WTE) plant at Ladang Tanah Merah, Port Dickson in Negeri Sembilan.

Its wholly-owned Cypark Smart Technology Sdn Bhd received the confirmation of feed-in-tariff commencement (FiTCD) on Friday (Feb 3) from Sustainable Energy Development Authority (SEDA), the renewable energy firm told Bursa Malaysia.

The SMART WTE is a renewable energy power plant using biomass (solid waste) as feedstock with an installed capacity of 19.7300MW.

According to Cypark, the FiTCD is effective for a period of 16 years from commencement date of Dec 14, 2022. Pursuant to the FiTCD, Tenaga Nasional Bhd will purchase electricity from the company at the pre-agreed feed-in tariff rate.

“The project is expected to have material impact on the earnings and net assets of the CRB group for the financial year ending April 30, 2023 and subsequent financial years for the FiTCD period,” Cypark said.

Earlier this week, Cypark was queried by Bursa Malaysia over the unusual trading volume of its shares. In response, Cypark pointed out that the increase in its share price was due to the emergence of Jakel group's investment arm as the largest shareholder.

Cypark's share price has doubled from 54 sen since Jakel Capital Sdn Bhd emerged as the company's largest shareholder last month, with a 27.33% stake, after it completed a private placement involving 176.65 million new shares, with all the shares acquired by Jakel Capital for RM67.1 million or 38 sen per share.

On Friday, the stock closed at RM1.08 — its highest since June 11, 2021, when the stock closed at RM1.09 — after about 37.66 million shares were traded. At this price, the company has a market capitalisation of RM834.96 million.