Cypark Resources Bhd, a solid waste management company is investing RM94.29mil to build a renewable energy park (RE Park) with grid connection on a 26ha remediated landfill in Pajam, Nilai.
The RE Park, announced by Prime Minister Datuk Seri Najib Tun Razak yesterday was one of the new investments from entry point projects of the Economic Transformation Programme.
Comprising a 2MW biogas plant and a 8MW solar power facility, the RE Park is expected to generate RM12.16mil in gross national income in 2020.
“The success of this project could catalyse similar projects in 31 other landfill sites in the Peninsular. Local authorities where the landfills are situated will be able to capitalise this new source of income and are required to do so on open tender basis,” Najib said in his speech yesterday.
The RE Park involves the integration of three potential resources available at the landfills such as solar, landfill gas and waste into a scalable renewable energy project generating up to 10MW of power in the Pajam landfill.
“Pajam landfill is one of the 17 landfills that the Government has mandated us to close down. So, we are using the Pajam site as a full scale commercial pilot project,” group chief executive officer Daud Ahmad said.
He said Cypark would replicate similar ways of unlocking the economic value of the land for the remaining 16 landfill sites.
Daud said energy generated from the landfill would be fed to the National Grid via a sale to Tenaga Nasional Bhd.
He targets to sell its capacity to TNB within this year. It was currently awaiting for the Renewable Energy Act to be passed at the Parliament and the feed-in-tariff be to enforced.
“We expect to generate 10MW by 2013,” he said, adding that Cypark expected some returns on investment from the RE park later this year.
Daud said the investment to replicate the RE Park to different landfill sites varies as the size of the site differs.
Cypark director K.K. Siow said the company had received a number of enquiries from South-East Asia to extend its expertise in closing down landfills.
However, he said Cypark would focus its business in Malaysia before venturing overseas.
He said the company would be launching the RE Park “soon” as the park was ready for commercialisation.
Siow said the company’s prospects for the current year was good due its existing waste management contracts and the renewable projects would advance Cypark’s prospects.
