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Sino Construction gets nod to start micro power plants in Korea
A SUBSIDIARY of Sino Construction has received approval to start operations at its micro power plants in Korea.
Magnum Modular Power Generation (MMPG) - a joint venture with Primeforth Renewable Energy Limited - completed construction of its first micro power plant on April 29, and is building a second plant that is expected to be ready by end July, Sino Construction said on Wednesday morning.
The modular systems incorporate MMPG's proprietary advances in biofuel technologies and micro power plant development that will enable immediate rollout in the supply of power generation, it added.
Said its interim executive director Drew Madacsi: "The licence allows MMPG to operate the first two micro power plants perpetually, giving us renewed confidence in the statutory processes in South Korea. The successful rollout of the micro power plant programme is important to the company's long-term cashflow strategy."
The group - listed on the Singapore Exchange mainboard since June 12, 2008 - has hit multiple road blocks in its attempt to restructure its business to pursue opportunities in the energy sector.
In end April, it said it will withdraw from three contracts worth S$122.5 million in favour of opportunities in the renewable energy sector, which it hopes will allow the group to pay a consistent dividend over time.
The three projects it withdrew from were Guildford Coal Limited (S$70.9 million), JEMS Exploration Pty Ltd (S$25.2 million) and Signet Coking Coal International Ltd (S$26.4 million).
The company has also seen the resignation of the previous executive director and non-executive chairman.
The start of the micro power plants in Korea will have a positive impact on the group's earnings for the current financial year, Sino Construction said.