Fitters Diversified commences sale of renewable electricity to TNB

PETALING JAYA: Fitters Diversified Bhd's wholly owned subsidiary Future Biomass Gasification Sdn Bhd (FBG) has commenced sale of renewable electricity to Tenaga Nasional Bhd (TNB) under the renewable energy power purchase agreement signed in 2015.

The group said in statement that FBG has received approval from the Sustainable Energy Development Authority of Malaysia (Seda) to commence the feed-in tariff (FiT) to the national grid for 16 years beginning March 31, 2018.

According to Fitters, up to 2MW of renewable electricity will be produced at its green palm oil mill in Baling, Kedah, where biogas will be generated from palm oil mill effluent in a biogas capture plant and converted into electricity using highly efficient biogas engine generators.

The FiT rate has been set at 47 sen per kilowatt hour, and the contract is expected to contribute immediately to the group's financial performance for the financial years ending Dec 31, 2018 till 2033.

"We desire for our green mill to be a practical showcase for all palm oil mills, not only in proactively participating in the renewable energy initiative, but also enhancing its economic viability beyond the supply of downstream products," said Fitters managing director Datuk Richard Wong.

"Connecting to the national grid effectively supports the government's endeavour to champion electricity generation from sustainable sources. This marks a new beginning for our renewable energy segment, and opens up the opportunity for us to replicate this model to other mills nationwide," he said.

The 2 MW biogas capture plant, which was set up at an estimated cost of RM24 million, has received pioneer status approval from the Malaysian Investment Development Authority, which allows FBG to enjoy 100% tax exemption for 10 years for the sale of renewable electricity generated from biogas.

The plant was also approved for the Green Technology Financing Scheme of the Malaysian Green Technology Corporation under the purview of the Energy, Green Technology and Water Ministry.

At the noon break, Fitters shares fell 1.5 sen or 3.9% to 37 sen on some 69,000 shares done.