Flash Sime Darby, Tenaga and Mitsui & Co collaborates in potential biogas projects

KUALA LUMPUR: Sime Darby PLANTATION [] Sdn Bhd, TENAGA NASIONAL BHD []
(Tenaga) and Mitsui & Co Ltd have signed a Memorandum of
Understanding to study the feasibility of potential biogas projects at
palm oil mills owned by Sime Darby Plantation.

The joint
feasibility study will scrutinise in detail the technical feasibility,
financial viability and preliminary development works for implementation
of potential biogas power generation projects.

Sime Darby
Plantation Executive Vice President Franki Anthony Dass said the
feasibility study would begin with eight palm oil mills, which has the
capacity to generate between 1.3Mw and 1.5Mw daily.

"We will
extend the biogas production for power generation in other mills after
the two-year feasibility study is done," he told the media at a press
conference after signing the MoU on Monday, April 4.

Sime Darby Plantation has 62 palm oil mills, out of which 40 are in Malaysia while 22 are in Indonesia.

Dass said Sime Darby would also seek approval from Indonesian
authorities to enable the mills to generate power from biogas in the
future.

Tenaga remains a long term buy, says OSK Research

KUALA LUMPUR: OSK Research has maintained its buy recommendation on TENAGA NASIONAL BHD []
with a fair value of RM7.54 after Tenaga awarded the Janamanjung
1x1000MW coal-fired power plant extension to a consortium led by Alstom
for a total of RM5.02 billion.
It said this was largely within its expectations and that it saw some subcontracts coming the way of local CONSTRUCTION [] companies such as Mudajaya.
“We estimate that Tenaga will enjoy some RM2 billion in savings over
the lifetime of the plant but make no changes to our estimates as this
has been built in.
“Without clarity on tariff hikes, Tenaga remains a Long Term Buy. The
company will be announcing a biogas JV with Sime Darby today,” it said
in a note Monday, April 4.