CAB Cakaran to set up biomass power generation plant

PETALING JAYA: Poultry producer CAB Cakaran Corp Bhd signed a memorandum of understanding (MOU) with Japan's New Chemical Trading Co. Ltd and Seri Kedah Corp Sdn Bhd last Friday, to establish a biomass power generation business.
In a statement last Friday, the company said the business will produce fertiliser as a by-product through the incineration of chicken droppings.
Under the MOU, two joint venture (JV) companies will be formed, the first being a JV company between New Chemical Trading and Seri Kedah (JV1) for the licensing of specific technology and know-how related to biomass power generation.
JV1 will be responsible for the maintenance servicing for the processing facilities and equipment, as well as the marketing of the fertilizer. The plant will be designed by Japan based Nangoku Kousan Co. Ltd.
A second joint venture company (JV2) will be incorporated by all three parties where the business will be focused on biomass power generation and the selling of the power produced.
Under JV2, CAB Cakaran will hold 51%, while the remainder 49% will be held by Seri Kedah and JV1.
CAB Cakaran's role will be to provide the JV companies with information on the poultry industry in Malaysia and relevant variables for the feasibility study.
Seri Kedah's role will be to provide JV2 with support for the necessary grants, subsidies, business licenses and approvals in Malaysia.
It will also provide support for the approval or contracts from Sustainable Energy Development Authority Malaysia (SEDA) and Tenaga Nasional Bhd (TNB) or other relevant authorities to run the biomass and solar photovoltaic power plant business.