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Minetech bags RM37.7m contract to build 3MW mini-hydro power plant in Terengganu

Minetech bags RM37.7m contract to build 3MW mini-hydro power plant in Terengganu

11 Jan 2023

Minetech Resources Bhd’s unit has secured a RM36.71 million contract from Tesdec Hydropower Sdn Bhd to build a mini-hydro power plant in Besut, Terengganu, from January this year till May 2027.

This came after both parties entered into a Memorandum of Understanding (MOU) in December last year to collaborate in the development of a 30MW mini-hydro project in Terengganu.

The contract award on Wednesday (Jan 11) will supersede the MOU and the latter would no longer subsist, said Minetech in a stock exchange filing.

The project comes under the Sustainable Energy Development Authority’s (SEDA) feed-in-tariff (FiT) programme in which businesses or individuals that hold SEDA’s feed-in approval certificate can sell renewable energy at the FiT rate to distribution licensees such as Tenaga Nasional Bhd, said Minetech.

Tesdec Hydropower is a subsidiary of Terengganu state government-owned unit Tesdec Bhd.

Minetech executive chairman Datuk Awang Daud Awang Putera said the project is another step forward by the group to diversify into renewable energy (RE).

“The 3MW mini-hydro power plant project will allow us to also showcase what Minetech is capable of as we seek more opportunities in RE. 

“As a registered solar photovoltaic investor with SEDA and the owner of a 9.99MW AC floating solar power plant in Pantai Remis, Perak, we are also able to sell electricity to government agencies, businesses and individuals under SEDA’s Net Energy Metering Programme or NEM 3.0,” he said.

Shares of Minetech closed unchanged at 5.5 sen, giving it a market capitalisation of RM83.74 million.

Source: The Edge Markets