A local company incorporated in Perlis Bio Power Sdn Bhd intends to become a top energy (electric) renewable provider in the country under the biomass concept following a strategic tie-up with the US-based Solena Group Inc.
The venture would see padi husk, traditionally regarded as a non-resell value commodity in the agriculture sector, converted into gas before being formulated as electric juice in a hi-tech process called plasma gasification.
The deal would secure the formation of a RM60mil to RM70mil 10-megawatt (mwh) independent power plant (IPP) in Simpang Empat, Perlis which would then sell electricity to Tenaga Nasional Bhd (TNB) at prices higher than conventional IPP market supply rates due to its pioneering energy supply status.
It would also make Bio Power the first company in the world to produce electrified energy from padi husks using the plasma gasification concept a technology similarly adopted by the United States' National Aeronautics and Space Administration (NASA)'s shuttle programme.
Perlis Mentri Besar Datuk Seri Shahidan Kassim who witnessed the agreement signing between Solena and Bio Power on Wednesday, said the state, which had a 10% stake in Bio Power, wanted to aggressively venture into the renewable energy sector.
We have already established pioneering status with the inking of the agreement and we intend to use the technology to supply electricity to TNB on a more widespread basis, he told a press conference.
Also present were Bio Power director Raja Mazli Raja Tun Raja Mohar and Solena president and chief executive Dr Robert T. Do.
Shahidan said initially two small IPP plants including the 10 mwh plant in Simpant Empat would be set up.
Eventually, the state hopes to establish 10 IPPs which would supply to TNB.
Do said Solena would conduct a feasible study before constructing the 10 mwh plant.
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