BiON shares update on biogas plants, expands into UK market
The company announced that two of its plants are now selling electricity to Tenaga Nasional Berhad (TNB), Malaysia’s largest integrated electricity company, and also revealed it has expanded into the UK, opening an office in London.
Once fully operational, BiON’s current portfolio of biogas power plants, which generate electricity from the biogas produced in the treatment of palm oil mill effluent (POME), will have an installed capacity of 7 MW.
The firm’s 2 MW Seberang Perak plant commenced commercial operations at the end of January following the receipt of the certificate of initial operation date (IOD) from the regulatory authorities. The IOD enables BiON to sell electricity to TNB at a discount tariff rate. It expects to receive the certificate of commercial operation date (COD), which will allow it to receive the full Feed-in-Tariff rate, later this month subject to government restrictions related to the COVID-19 crisis.
The Malpom plant (2MW) recommenced supplying electricity to TNB in December 2020 at an initial reduced capacity. Upgrading works are underway to enable an increase in power generation to reach maximum capacity.
Solid progress was achieved in upgrading works at the 2 MW Kahang plant, with gas production reaching almost maximum capacity in February. Kahang will recommence supplying power to the grid following testing by TNB of electrical interconnection equipment, which is expected in the coming months.
The company’s Nasaruddin facility (1 MW) has resumed operations following a temporary shutdown at the adjoining palm oil mill as a result of COVID-19. BiON is awaiting the receipt of an IOD to enable power sales to commence, which it expects to occur in the coming weeks, subject to government pandemic-related restrictions.
BiON also achieved a key milestone in its strategy to expand globally with the opening of an office in London – its first outside Malaysia – and the appointment of a UK country manager.
The establishment of a presence in the UK is to help BiON expand its business in the UK and Europe, a market the company believes offers ‘ample opportunity’ due to the relative maturity of the renewable energy and clean technology sectors in the region.
Specifically, the company intends to add to its portfolio of waste-to-energy assets as well as seek potential partners or customers for its EPCC services, or in future, other biomass products.
Syed Nazim bin Syed Faisal, CEO of BiON, said: “I am pleased that we now have two of our biogas power plants selling electricity to the grid – and hope to soon be exporting power from all four plants and at maximum capacity.
“We have also continued with our EPCC work and to take steps to execute our strategy. In this regard, I am delighted that we have now opened our UK office and appointed Elle Sia as UK country manager. She brings tremendous experience in generating deals in this sector, which will provide invaluable as we seek to expand our presence in the UK and into Europe, as well as a deep understanding of the capital markets. We are excited about this opportunity and look forward to reporting our progress.”