Kinergy Advancement Bhd (KAB) is set to acquire the entire equity interest in PT Green Energy Specialist One (PT GESO) for RM8.89 million and plans to construct a 4.26 megawatt biogas plant in Aceh, Indonesia.
According to a statement by KAB, the proposed acquisition includes exclusive rights for the purchaser over the 6.5-hectare land where the biogas plant will be erected.
“PT GESO has already inked a power purchase agreement (PPA) with PT Perusahaan Listrik Negara, Indonesia’s state electricity company.
“The PPA, valid for 25 years from the commercial operation date, guarantees a stable and dependable revenue stream, strengthening KAB’s recurring income in the regional context.”
Furthermore, the proposed acquisition encompasses an exclusive agreement with four palm oil millers for the sale and purchase of palm oil mill effluent, ensuring a consistent supply of crucial raw materials for biogas production to KAB prior to the formal acquisition.
