Fitters Diversified Bhd has commenced sale of renewable electricity (RE) to Tenaga Nasional Bhd (TNB) under the RE power purchase agreement signed in 2015.
In an exchange filing last Friday, the company noted that its subsidiary, Future Biomass Gasification Sdn Bhd (FBG), gets a feed-in tariff (FiT) rate of 47 sen per kWh for the power its supplies to TNB.
FBG has a green palm oil mill in Baling, Kedah, which will produce up to 2MW of RE at a biogas capture plant that uses efficient biogas engine generators.
The biogas capture plant received Pioneer Status approval from the Malaysian Investment Development Authority, which allows FBG to enjoy 100% tax exemption for 10 years on the facility.
The plant was set up at an estimated cost of RM24 million, equipped with stateof-the-art generators of German technology.
FBG has received an approval letter from Sustainable Energy Development Authority of Malaysia dated April 4, 2018, to commence the FiT to TNB for 16 years starting March 31, 2018.
Fitters entered the RE generation business in 2008 through its unit, Future NRG Sdn Bhd, which implements green mill technologies. The unit has completed its proposed 100% disposal of Liangshan Future NRG Biology Electric Power Co Ltd for a total price of RM24.55 million.