KUALA LUMPUR: Cypark Resources Bhd wholly owned subsidiary Reviva Sdn Bhd, has been granted a 1.100 megawatt (MW) biogas quota at the Ulu Remis palm oil mill at Layang-Layang, Johor by Sustainable Energy Development Authority Malaysia (SEDA).
In a filing to Bursa Malaysia today, the company said the biogas produced from the mill will be sold at the approved rate stated in the feed-in-tariff (FIT) certificate.
It said subsequently, a special purpose vehicle (SPV) had been set up between Reviva and BAC Renewable Energy Sdn Bhd (BACRE) to carry out the biogas project and to fulfil conditions as set out in the letter of result of application.
Reviva BACRE (Ulu Remis) Sdn Bhd, being the SPV, was incorporated on March 25, 2021.
Reviva holds 51 per cent of the shares in Reviva BACRE while BACRE holds the remaining 49 per cent.
Reviva BACRE will be principally engaged in the biogas power plant business.
Cypark said the project is not expected to have any material impact on the earnings and net assets of the group for the financial year ending October 31, 2021.
However, it said the project is expected to contribute positively to the future earnings of the group.