PETALING JAYA: Nextgreen Global Bhd
’s (NGGB) wholly-owned unit Nextgreen Biomass Sdn Bhd will use a special-purpose vehicle (SPV) called GTC Biomass Bhd for the construction, development and commissioning of 20 oil palm waste collection and processing centres throughout Malaysia.
NGGB, in a filing with Bursa Malaysia yesterday, said it will undertake the proposed centres in a joint venture (JV) with Greentech Malaysia Alliances Sdn Bhd (GTMASB), Koperasi Sahabat Amanah Ikhtiar Malaysia Bhd and Koperasi Perkhidmatan Setia Bhd.
The shareholding of the SPV will consist as follows: Nextgreen Biomass Sdn Bhd (65%), GTMASB (10%), Koperasi Sahabat (18%) and Koperasi Perkhidmatan Setia Bhd (7%), NGGB’s filing said after the JV agreement had been signed.
“We are pleased to work on this project together with our partners. They have provided us tremendous support in our zero-waste venture and we wish to thank them. We look forward to the opening of the first collection centre,” NGGB’s managing director Datuk Lim Thiam Huat said in a statement.
“In line with the opening of our Green Technology Park in July 2022 which is equipped with state-of-the-art technology in the conversion of oil palm empty fruit bunches into pulp and paper, we believe that entering into a JV for the establishment of oil palm collection centres is a step in the right direction for us. Overall, this project is expected to contribute positively to the future earnings of the group,” Lim added.
Nextgreen Biomass will provide investment opportunities in developing the centres and through its related company, Nextgreen Pulp & Paper Sdn Bhd, and it is obliged to purchase all oil palm waste or derivates from the centres.
Meanwhile, the statement said GTMASB will facilitate the RM200mil sukuk or bonds for the development of four of the said oil palm waste collection and processing centres while Koperasi Sahabat will lead and work together with other parties to obtain crowdfunding to invest in the SPV.
