KUALA LUMPUR: Kinergy Advancement Bhd (KAB), via its wholly-owned subsidiary KAB Energy Holdings Sdn Bhd (KESB), announced a term sheet to acquire the entire equity interest in PT Green Energy Specialist One (PT GESO) and build a 4.26MW biogas plant in Aceh, Indonesia.
This acquisition, which includes purchaser exclusivity over the 6.5-hectare land where the biogas plant will be constructed, exemplifies KAB’s enhanced capabilities in not just planning and constructing but also developing, maintaining, and owning diverse energy projects, cementing its leadership in the sustainable energy sector.
KESB has agreed to complete this strategic deal for RM8.89 million.
PT GESO has secured a power purchase agreement (PPA) with PT Perusahaan Listrik Negara (PLN), Indonesia’s state electricity company.
The PPA, valid for 25 years from the commercial operation, ensures a steady and reliable revenue stream, bolstering KAB’s recurring income on the regional stage.
Additionally, this acquisition entails an exclusive agreement with four palm oil millers to sell and purchase palm oil mill effluent, securing a consistent supply of raw materials essential for biogas production to KESB before the formal acquisition.
This could be marked as one of the strategic arrangements aimed at enhancing the plant’s operational efficiency and reliability.
This plant, a premier greenfield biogas facility with an installed capacity of 4.26MW, will enhance KAB’s sustainable energy and engineering solution (SES) diverse energy portfolio and reinforce its commitment to sustainable energy generation and environmental stewardship.
KAB executive deputy chairman and group managing director Datuk Lai Keng Onn said the acquisition of the Aceh biogas plant is a strategic move that aligns perfectly with the company’s growth plan in sustainable energy.
He said Indonesia, the world’s largest palm oil producer, presents a compelling choice for this development, with abundant feedstock available for biogas production.
“This project strengthens our renewable energy portfolio and positions us as a competent energy solutions provider to leverage regional growth opportunities.
“Upon completion, the Aceh biogas plant will be another recurring revenue generator for KAB, reinforcing our foothold in the Southeast Asian market and supporting our mission of driving sustainable energy development,” he said in a statement.
The latest move to acquire PT GESO reflects KAB’s intent to solidify its market presence as a distinctive energy player while ensuring its advancement in the rapidly growing Southeast Asian energy market.
