ENERGY services firm Kinergy Advancement Bhd (KAB) announced today its plan to acquire Indonesian company PT Green Energy Specialist One Tbk (PT Geso) for RM8.89 million.
The acquisition includes the development of a 4.26-megawatt biogas plant in Aceh.
KAB’s unit, KAB Energy Holdings Sdn Bhd, signed a term sheet with Singapore’s Green Energy Specialist Pte Ltd for the acquisition, which also grants exclusivity over a 6.5-hectare land for the plant’s construction.
PT Geso has secured a 25-year power purchase agreement with Indonesia’s state electricity company, PT Perusahaan Listrik Negara Tbk.
This acquisition marks KAB’s second venture into Indonesia, following its mini-hydroplant in North Sumatra, and aligns with its strategy to diversify its energy portfolio.
The deal includes agreements with four palm oil millers for their effluent, ensuring a steady supply of raw materials for biogas production.
KAB executive deputy chairman and group MD, Datuk Lai Keng Onn, emphasised the strategic importance of the Aceh biogas plant, citing Indonesia’s abundant palm oil byproducts as a key resource for biogas production.
The plant is expected to be completed by the first quarter of 2025 and will generate recurring revenue for KAB. –TMR