The waste-to-energy plant that utilises methane gas collected from the landfill to produce electricity or is burned to prevent release of harmful gas into the air.
KUALA LUMPUR: BTM Resources Bhd
plans to team up with two overseas partners to set up a municipal waste-to-energy (WtE) plant in Malacca with an estimated investment cost of RM435mil.
In a filing with Bursa Malaysia on Monday, the integrated timber firm said it had inked a memorandum of understanding (MoU) with Singapore-based China Western Power International Pte Ltd and China-based Sichuan No. 2 Electric Power Construction Co to build the plant with a minimum capacity of 1,000 tonnes per day.
Under the MoU, which is valid for a year, the parties will jointly invest in securing the power generation project via a special purpose vehicle to be formed by either them or their respective related companies.
The overseas partners are required to procure the entire funding cost for the engineering, procurement, construction and commissioning of the project. All technology development cost related to the project will also be funded entirely by them.
BTM’s obligation, meanwhile, is to secure a waste disposal concession of not less than 25 years from the Malacca government and suitable tipping fee and power purchase agreement. It is also required to identify, propose and procure a suitable site for the WtE plant.
The entire and formal agreements relating to the performance of the power project will be finalised within 30 days from the date that the project is awarded to the parties or such further time as may be agreed by the parties.
“The MoU and collaboration contemplated therein will serve as a platform for the company to tap into the reputation, experience and standing of Sichuan Power in power generation projects. This will also diversify the income stream and contribute to the profitability of BTM Group in the future,” said BTM.
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