PETALING JAYA: CAM Resources Bhd's wholly-owned subsidiary of Camres, Future Atlas Sdn Bhd (FASB) has undertaken to build a 2MW biogas plant in Taiping, Perak for RM19.8 million.
The project is expected to be completed on May 24, 2019, which is the scheduled feed-in tariff commencement date.
The cost for the project will be satisfied entirely in cash, which will be mainly financed through bank borrowings (80%) and via internally generated funds (20%).
Upon completion, its total borrowings are expected to rise to RM59.65 million from RM43.85 million as at end-2016, bringing the gearing ratio from 0.43 to 0.59 times.
In June, FASB received approval from Sustainable Energy Development Authority Malaysia (SEDA) on the feed-in approval for the plant, to sell its renewable energy to Tenaga Nasional Bhd under the SEDA feed-in tariff (FiT) system for a period of 16 years, commencing from the scheduled feed-in tariff commencement date of May 24, 2019.