The debt facility will be provided by MIDF Amanah Investment Bank Bhd and China Construction Bank (M) Bhd for the biogas-to-energy (BTE) projects.
It was a 50:50 joint venture between the two institutions.
Cenergi group chief executive officer Ernest Navaratnam said the new BTE plants are expected to have capacity to generate between 1MW and 2MW electricity per plant.
“We have between 16 and 21 years’ power purchase agreement under the Sustainable Energy Development Authority Malaysia (SEDA Malaysia),” he told reporters after the signing ceremony between Cenergi, MIDF and CCB for the “Green Club Facility”.
Currently, Cenergi operates six biogas plants in Malaysia with combined capacity of 8.6 MW of power generation.
As of July 2019, Cenergi has generated a total of 135,090 MWH of renewable energy to the national grid and has avoided 134,930 tonnes of carbon dioxide.
Navaratnam said the Green Club Facility would help the company to meet its biogas financing needs and increase its contribution to the government’s green energy goal of generating 20% of the country’s energy from renewable sources.
Notably, in May this year, MIDF was also involved in another renewable energy projects, which is the issuance of sukuk to raise up to Rm590mil to build two small hydropower plants in Sabah.
“There are a lot of opportunities in the renewable energy (RE) sector.
“Moving forward, we will see more of this kind of project financing where it involved agglutination of many small projects,” said MIDF Investment Bank chief executive officer Datuk Dominic Silva.
Earlier, Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin was quoted as saying that Malaysia needs investments totaling Rm33bil in order to achieve its target of 20% electricity generation from RE sources by 2025, said
She said the investments would be contributed by the government, public-private partnerships and private financing.
“The Securities Commission has already done a six-month study on green financing. They formed a green financing task force and gave a report on 21 action items to facilitate the Rm33bil investments in RE. The government will look through all the action items and implement [them] accordingly,” Yeo said.
Part of the government’s efforts to incentivise private financing include institutional reforms, besides continuing with existing government incentives like the Green Technology Financing Scheme, Green Investment Tax Allowance and Green Income Tax Exemption, to help RE players, she added.
Source: The Star