KUALA LUMPUR: BTM Resources Bhd's unit BTM Biomass Products Sdn Bhd has obtained approval from Sustainable Energy Development Authority (SEDA) to supply electricity to Tenaga Nasional Bhd (TNB) in Terengganu.
In an exchange filing today, BTM said the approval allows it to build and operate a renewable electrical power plant with a capacity to supply 10 MW per hour of electricity to TNB.
"We received the Feed-in Tariff (FIT) Approval Certificate dated July 1 and 2, 2020. The approval granted is for a period of 21 years commencing no later than January 23, 2023," it said.
BTM expects to sign power purchase agreement (PPA) with TNB in October at a fixed tariff 34.86 sen per kWh for 21 years.
Its power plant will be located inChukai, Terengganu."
BTM said construction of the plant was targeted to commence in June 2021 and to be completed in December 2022.
"The sources of funds for the cost of construction will be bank loan and/or proceeds to be raised from corporate exercise."
"The FIT approval / PPA shall contribute positively to the future earnings of the group during the effective period from January 2023 ,the commenced date of FIT up to the end of twenty first 21 years," it added.