09/11/2022 (New Straits Times), Kuala Lumpur - KUALA LUMPUR: Kejuruteraan Asastera Bhd (KAB) is acquiring the entire stake in Future Biomass Gasification Sdn Bhd (FBG) from Future NRG Sdn Bhd (FNSB) for RM15 million.

In a statement today, the engineering and energy solutions provider said the acquisition was done in its bid to grow its sustainable energy solutions (SES) segment with its first biogas power plant.

FBG owns a biogas power plant in Kedah with an installed capacity of 2.4 megawatts.

KAB said it would benefit from long-term recurring income via FBG's existing renewable energy power purchase agreement (REPPA) with Tenaga Nasional Bhd (TNB).

The REPPA is effective for 16 years from March 2018 until March 2034, which enables FBG to supply power to the national grid.

KAB managing director Datuk Lai Keng Onn said the addition of the company's first biogas power plant via the proposed acquisition of FBG, would broaden its portfolio of SES assets.

"The biogas industry has great untapped potential in Malaysia, given the vast availability of palm oil effluent as fuel, and we aim to help Malaysia and other countries in the region achieve their renewable energy goals.

"The plant would also contribute to building a stable stream of long-term income for the group," he said.

FBG's biogas power plant captures the release of greenhouse gases from palm oil effluents and converts the gas into electricity using highly efficient biogas engine generators.

The electricity is supplied to nearby towns and villages under the Feed-In Tariff programme.

KAB's wholly-owned KAB Energy Holdings Sdn Bhd is expected to complete the acquisition in the first quarter of 2023.

KAB's fast-growing SES segment currently encompasses solar power, co-generation and waste-heat-recovery assets in Malaysia and Thailand.

https://www.nst.com.my/business/2022/11/848778/kab-buys-its-first-biogas-power-plant