KUALA LUMPUR (March 9): Cypark Resources Bhd (KL:CYPARK) is to proceed with the expansion of its waste-to-energy (WTE) plant in Ladang Tanah Merah, Port Dickson, after it secured government approval.

A supplementary concession agreement to develop Phase 2 of the WTE plant was inked between its unit Cypark Smart Technology Sdn Bhd, the Malaysian government and the Solid Waste and Public Cleansing Management Corp, Cypark said in a statement on Monday.

“This agreement marks an important step in progressing Phase 2 of the WTE plant and reflects the continued collaboration between Cypark and the government of Malaysia to strengthen the nation’s waste management infrastructure while advancing the renewable energy agenda,” Cypark group managing director Datuk Ami Morris said.

Subject to final negotiations, Cypark said the construction of Phase 2 of the WTE plant is expected to yield positive contributions to its future earnings over its lifespan.

Details of the expansion were not disclosed.

The current WTE plant generates up to 15MW in renewable energy, processing up to 1,000 tonnes of solid waste daily, under a 25-year concession slated to end in end-2041.

Shares in Cypark closed 4.5 sen or 7.5% lower at 55.5 sen, valuing the group at RM456.67 million.