VibroPower to invest in biomass power plant in M'sia

Singapore

VIBROPOWER Corporation Limited is investing in a biomass power plant in Kluang, Malaysia, it said in a filing to the Singapore Exchange on Sunday.

The project is estimated to cost RM120 million (S$39.2 million), and the group intends to invest 25 per cent of that sum - RM30 million - in VPGE, a special purpose vehicle set up in 2013 to conduct a feasibility study on the viability of the project.

VPGE intends to finance the project through a combination of internal funds and bank borrowings.

The proposed biomass power plant project will be fuelled mainly by empty fruit bunches - a solid waste product from palm oil mill factories - the group said.

The plant will also be able to use other biomass fuels such as palm kernel shells, wood chips, forest residue and saw dust, it added.

"The biomass power plant is expected to have a capacity of 20 megawatt gross power generation and the net electricity generated will be sold to Tenaga National Bhd's distribution grid," VibroPower said in its filing.

"The project is in line with one of the group's business in operating green and clean power plants which the group first embarked upon in the People's Republic of China in 2012."

On Friday, VibroPower's counter closed four Singapore cents - or 12.1 per cent - higher at S$0.37.