CAB Cakaran Partners Japanese Company To Tap Biomass Power Business

GEORGE TOWN, March 20 (Bernama) -- Poultry group, CAB Cakaran Corporation Bhd entered into partnership with Japanese-based New Chemical Trading and Seri Kedah Corporation Sdn Bhd to establish the first-of-its-kind biomass power generation plant in Malaysia. CAB Cakaran Managing Director Christopher Chuah Hoon Phong said the plant was expected to be completed in 2017 and would mark the company's first downstream foray into the poultry business. "The plant will produce fertilisers as a by-product via the incineration of chicken droppings, selling of power and processing of meat waste into animal feed protein and calcium," he said after the signing of memorandum of understandings to formalise the agreement with both parties. New Chemical Trading is 90 per cent owned by Nippo Holdings Co Ltd while Seri Kedah provides support for the approval of necessary grants, subsidies, business licences for contracts obtained from Sustainable Energy Development Authority Malaysia (SEDA) and Tenaga Nasional Bhd (TNB) or other relevant authorities to run the biomass and solar photovoltaic power plant business. Two joint-venture companies will be established under the partnership facilitated by The Northern Corridor Implementation Authority (NCIA). Under the first partnership, New Chemical Trading and Seri Kedah will form a joint-venture company for the licencing of specific technology and know-how related to biomass power generation. The plant will be designed by Japan-based Nangoku Kousan Co Ltd and the joint venture company will be responsible for maintenance servicing for the processing facilities and equipment, as well as, the marketing of the fertiliser. The second joint venture company will be incorporated by CAB Cakaran, New Chemical Trading and Seri Kedah to focus on biomass power generation and the selling of the power produced. In the second joint venture company, CAB Cakaran will hold 51 per cent, while the remainder 49 per cent will be held by Seri Kedah and the first joint venture company. CAB Cakaran's role will be to provide the joint venture companies with information on the poultry industry in Malaysia and relevant variables for the feasility study. New Chemical Trading will provide the technical know-how related to the businesses. Asked on the investment cost for the proposed plant, Chuah declined to comment as feasibility studies were still being conducted to determine the best site, soil testing, collection of waste and infrastructure. -- BERNAMA