KAB acquires biogas power plant in Kedah for RM15mil

KUALA LUMPUR: Kejuruteraan Asastera Bhd's (KAB) wholly owned subsidiary has acquired Future NRG Sdn Bhd's subsidiary, Future Biomass Gasification Sdn Bhd, and its biogas power plant assets for RM15mil.

In a statement, the group said it had today signed the sale and purchase of share agreement following from the signing of the term sheet on the proposed acquisition on Nov 9, 2022, as well as the completion of the due diligence process.

The engineering and solutions provider said the biogas power plant in Kuala Kertil, Kedah, which has an installed capacity of 2.4 million MW, captures greenhouse gases released from palm oil effluents and converts the gas into electricity using highly efficient biogas engine generators.

The electricity generated by the biogas power plant is supplied to the national grid, and subsequently to nearby towns and villages under a Feed-In Tariff programme.

Following the acquisition, KAB said it will also recognise the revenue from Future Biomass Gasification's existing renewable energy power purchase agreement (Reppa) with Tenaga Nasional Bhd.

The Reppa commenced in 2018 and is effective for 16 years until 2034.