08/09/2012 (Bernama) - The biomass renewable power generation plant owned by Felda Global Ventures Holidngs Bhd (FGV) in Felda Jengka 9 near here is expected to be fully operational at year-end.

FGV president and chief executive officer Datuk Sabri Ahmad said the project, undertaken by its subsidiary FTJ Biopower Sdn Bhd on a joint venture with Tenaga Nasional Bhd (TNB), has an investment value of RM125 million.

He said FGV holds a 60 per cent stake in the project while TNB has 40 per cent.

"The station has the ability to produce 12.5 megawatt (MW) of electricity, of which 10MW will be sold to TNB for disribution to the national grid at 30 sen per kilowatt hour for 21 years.

"The (biomass) generation station will utilise 32,000 tonnes of empty fruit bunches which we will procure from seven oil palm factories around Jengka including Lepar Utara, Padang Piol and Kota Gelanggi," he said.

He said this to reporters after officiating the Green Initiative Programme and working visit to the power generation station near here today.

Also present was TNB senior general manager (main project) Suhaimi Ali Hanafiah.

Sabri said the power generation station, build on 4.2-hectare land, is the second developed by Felda after the Felda Sahabat station in Sabah.

Besides supplying electricity to the rakyat, the development of the power generation station will also create job opportunities for local residents in transporting of raw materials services to the station.

"The station is also able to generate additional income for FGV through the sale of crude palm oil to the industry and bunch ash which can be processed into fertiliser," he said.

FGV also plans to develop a similar power generation plant in Kuantan to meet industry demand and increase the usage of renewable energy in efforts to reduce greenhouse gas emissions.