Tuesday, March 5, 2002 (The Star) - BANK Industri & Teknologi Malaysia Bhdhas extended a seven-year term loan facility of RM20mil to Palm Energy SdnBhd to finance the construction of a 9.8MW biomass based co-generationpower plant in Lahat Datu, Sabah.The RM30mil power plant – believed to be the first in Malaysia to recycleoil palm waste, such as empty fruit bunches and palm kernel shells, togenerate electricity – will supply power for Kwantas Corp Bhd, Palm Energy’s parent company operating in Lahat Datu and its surrounding areas.Bank Industri Group managing director, Md Noor Yusoff said yesterday: “This is the bank’s first venture into a biomass renewable energy conceptproject, which capitalises on the abundant fuel resources from oil palmwaste as an alternative source of fuel.’’For this year, the bank is targeting a loans disbursement of RM35mil forthe environmental sector, he said.Noor said the bank was also targeting other sub-sectors under theenvironment sector, including wastewater, solid waste management andpollution control projects.“We plan to disburse about RM200mil in loans for the environmental sectorover the next five years,’’ he said after the term-loan facility signingceremony between Bank Industri and Palm Energy in Kuala Lumpur.Meanwhile, Kwantas Corp group managing director Steve Kwan said PalmEnergy’s power plant is expected to make savings of between RM8mil andRM10mil a year in fuel costs for the group.Kwantas’ core activities include a 70,000-acre oil palm plantation, a palmoil refinery and a stone quarry in Lahat Datu.It is listed on the KLSE main board.The power plant, located near Kwantas’ palm oil refinery is scheduled forcompletion next month.Kwan said: “We are also discussing with power purchasers such as SabahElectricity Sdn Bhd the possibility of selling our excess electricitysupply to cater for the increasing power demand in Lahat Datu.’’