The palm plantation operator told Bursa Malaysia on Tuesday that it had signed a memorandum of understanding (MoU) dated Dec 14 with Newlight, a California-based company involved in producing thermoplastic materials made from air and greenhouse gases, and Innogas Technologies Sdn Bhd, a company involved in consulting, process plant engineering and technology for chemical and renewable energy.
The MoU sets out the understanding and intention of the parties during this interim exploratory period. The MoU will remain valid for six months or such extended period as will be agreed in writing by the parties.
In a media statement, FGV said the parties involved planned for the project to kick off in the second quarter of 2016 with first plant construction to begin in the fourth quarter of next year, to be completed within 14 months.
“Eventually, the project will be expanded to 10 palm oil mills over the next five years,” it said.
Innogas Technologies chief executive officer Denny Yeoh said Innogas Technologies held an exclusive license for a patented state-of-the art technology to process ligno-cellulosic biomass materials such as palm oil mill waste which generated a significant amount of biogas, compared to conventional technologies.
“The company will transfer this licence to the joint-venture company which will then have the exclusive use of this licence in Malaysia,” he said.
FGV said none of its directors or major shareholders or persons connected with them had any interest, direct or indirect, in the MoU.
FGV shares shed 3 sen to close at RM1.52 on Tuesday.
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