KUCHING: FITTERS Diversified Berhad (Fitters) yesterday saw its wholly-owned subsidiary Future NRG Sdn Bhd (FNRG) sign a Heads of Agreement with German-based AHT Services GmbH (AHT) to further re-engineer existing technology for generation of clean renewable energy from biomass gasification to suit the South East Asian region.
The agreement will see FNRG and AHT set up a new JV company, AHT NRG Sdn Bhd with a total paid-up capital of RM1 million, in which FNRG and AHT hold 70 per cent and 30 per cent stakes respectively. The JV company will be jointly operated and managed by both parties.
In addition, both FNRG and AHT will commit to the sharing of the re-engineered technology and knowledge in relation to biomass gasification and cleaning. The JV company is targeting to market its technology to the South East Asian region at an affordable cost without compromise on its technicalities.
Datuk Richard Wong, managing director of Fitters said, “Our tie-up with AHT will effectively accelerate our renewable energy expansion plans. We will work closely with AHT not only in re-engineering the existing technology, but also in deploying our solutions in the region, as we set sights to be a leading player in the renewable energy sector.
“Our biomass-gas generators will be able to treat and convert biomass wastes like empty fruit bunches (EFB) briquettes, palm kernel shells (PKS) and wood chips into renewable and clean energy source. This is a proven technology in many countries such as Europe, Japan, India and Indonesia; and is a good replacement for diesel powered generators.”
The agreement will also see the JV company purchasing three biomass-gas generators from AHT for RM14 million.
The three generators are expected to be deployed in the first quarter of 2015, in Sabah and Peninsula Malaysia. Once operational, the generators are capable of generating up to 1.2 megawatt of energy that will be provided to existing end-users using diesel generators or to the national grid under the feed-in-tariff scheme.
The RM14 million investment for the biomass-gas generators will be funded by the initial share capital and internally generated funds, bank borrowings and potential grants from the Malaysian government.