Tenaga Nasional Bhd has signed a power purchase agreement with Recycle Energy Sdn Bhd (RESB), a subsidiary of Core Competencies Sdn Bhd, for the latter to supply energy generated from municipal solid waste.
According to Core Competencies group chairman Datuk Dr Mohamed Ariffin Aton, RESB is considered a “micro” independent power producer as it is supplying about 64MW of clean energy to TNB daily from its only plant in Semenyih since one and a half years ago.
“But, we are glad that the tariff for this green energy from municipal solid waste, the first of its kind in Malaysia, had been doubled to 42 sen per KW/h since February.
“This provides us the much anticipated boost to expand the business,” he told reporters after the launch of the Winners 3, a television programme by Malaysian Technology Development Corp (MTDC) in collaboration with TV3, by Minister in the Prime Minister Office Tan Sri Nor Mohamed Yakcop yesterday.
“The rise in tariff has prompted RESB to have a second plant in Batu Pahat slated to be operational by 2014 with building cost of about RM200mil,” said Ariffin.
According to RESB, it is the pioneer for generating sustainable energy from municipal solid waste. To date, RESB has processed more than 500,000 tonnes of waste, having generated 36 million KW/h hours of electricity and supplying 22 million KW/h to the national grid at the rate before the tariff hike in February.
In addition to power generation, the processing technology used by RESB has prevented 162 tonnes of carbon dioxide emission and millions litres of waste leachate’ water from polluting the environment.
“We are grateful for the enormous support that MTDC has given us over the years. It has helped us to pioneer a new industry and to compete internationally in countries where there is a high export potential for our technology,” said Ariffin.
Meanwhile, Nor Mohamed said the Government had allocated an RM138.4mil fund for the commercialisation of research and development (R&D) and technological product and services in the 10th Malaysia Plan.
“I am confident that this fund would be a springboard to strengthen the effectiveness and capability of the innovation effort in the country in creating a economy based on knowledge and innovation,” he said.
The agreement signed between RESB and TNB yesterday was one of three agreements inked at the event yesterday.
The other two agreement included DNA Laboratories Sdn Bhd with Kalbe Genomic Laboratory, a Kalbe company, the largest public-listed pharmaceutical company in Indonesia that will see DNA Lab to provide molecular diagnostic services in Indonesia via PT. KlaGen DNA LAB.
The third agreement was between WCC Telco Sdn Bhd and Industronics Bhd for the production and marketing of WCC Telco products.
