Clean energy project developer Camco International has announced that Camco Southeast Asia (Camca SEA) is to embark on its first biogas clean energy project; a 2MW anaerobic digestion plant using palm oil mill effluent (POME).
The biogas plant will be built at a palm oil mill in Palong, Pahang state, Malaysia. When construction is finished – planned for early 2013 – the electricity generated will be supplied to the Malaysian national grid through a renewable energy power purchase agreement, to be entered into with one of the country’s utility companies.
Camco SEA has acquired the rights to develop the project through the acquisition of Biopower Climate Care Holding, a fully owned subsidiary of Rhodia Energy GHG of France. Bringing this project to fruition is estimated to cost Camco SEA $44 million (€35.5 million), including the acquisition of Biopower Climate Care Holding.
The project is being developed under a 13-year build-own-operate-transfer agreement with the mill owner, which will begin when the plant is complete and operational. Under the terms of this agreement, the mill owner will provide PME feedstock free of charge for the entire period of the contract.
MD of Camco Southeast Asia, Kent Carter, says he is ‘very pleased with our acquisition of the Palong biogas project’. ‘It strengthens Camco SEA’s market position in the biogas development business, one of the fastest growing of renewable energy development in the region,’ he adds.
Camco’s CEO Scott McGregor comments: ‘Strategically the biogas industry in South East Asia is a key sector to reduce emissions across the region and with our experience and resources available globally we are well positioned to lead this sector.’
Malaysia has over 1,000 palm oil plantations and POME waste is significant. However the government is pushing for the conversion of this waste into power and recently introduced a renewable energy feed-in tariff to encourage this.
