Quick take: BTM jumps 33% on power plant approval

KUALA LUMPUR: Shares in BTM Resources Bhd jumped over 33% in early trade Friday after obtaining approval to operate 10 mega-watt (MW) power plant.

The sawmill operator added 33.33%, or five sen to 20 sen with 13.9 million shares traded.

BTM said its wholly-owned subsidiary BTM Biomass Products Sdn Bhd received the Feed-in Tariff (FIT) approval certificate dated July 1 from the Sustainable Energy Development Authority (Seda), with the approval granted for a period of 21 years commencing no later than Jan 23, 2023.

The power plant will have the capacity to supply 10MW per hour of electricity to Tenaga Nasional Bhd, and is located in Chukai, Terengganu.

The expected date of signing of the power purchase agreement (PPA) with TNB is October 2020 at a fixed tariff rate of 34.86 sen per kWh for 21 years.

BTM said the cost of construction would be financed by a combination of bank loan and/or proceeds to be raised from a corporate exercise.