KUALA LUMPUR: The Federal Land Development Authority’s (Felda) new biogas plants under waste-to-energy project at its four mills are expected to be ready for commissioning by October 2018, said new energy player, Concord Green Energy Sdn Bhd (CGE).
CGE Managing Director/Chief Executive Officer, Datuk Khairuddin Mohd Hussin, said the plants, two in Pahang and two in Johor, were capable of generating 5.6 megawatts (MW) of electricity power from palm oil mill effluent discharged by the palm oil mills.
“We can now convert the waste from Felda’s palm oil mills to generate electricity.
“The excess electricity generated from the units will be sold and injected into the national grid, with revenue to be shared at mutually-agreed ratio,” he told reporters after signing a contract with Dana Engineering Sdn Bhd for the supply of six Jenbacher gas engines produced by General Electric (GE) to CGE for the biogas projects here today.
CGE was appointed by Felda Global Ventures Holdings Bhd (FGV) to build, operate and maintain 14 biogas sites or plants complete with power generation facilities at the latter’s selected palm oil mills for a period of 16 years.
Last year, CGE signed an agreement with FGV to immediately start construction work on four greenfield mills under Phase One of the ‘Mill Specific Build, Operate, and Own’ agreement where the GE’s Jenbacher gas engines will be located.
Khairuddin declined to divulge the revenue share ratio with Felda or FGV, citing FGV’s listed entity status.
“The revenue share ratio is competitive. Zero investment is required from Felda, except only for the supply of those natural waste as the biogas resources,” he said.
He added CGE, using soft loan and grant from the government as well as its own resources, had invested close to RM50 million for the six Jenbacher engines.
“For a plant that is set to generate 2.0 MW of power, the estimated investment is RM18 million and the payback period for CGE would start from the fifth year,” he added.