Green & Smart Holdings plc Malpom Plant Progress and Trading Update (9096A)

TIDMGSH

RNS Number : 9096A

Green & Smart Holdings plc

04 January 2018

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service ("RIS"), this inside information is now considered to be in the public domain.

4 January 2018

Green & Smart Holdings plc

("Green & Smart" or "the Company")

Malpom Plant Progress and Trading Update

Second fully-owned biogas power plant successfully optimised and operating above headline capacity with readings reaching 2.3MW

Green & Smart Holdings plc (AIM: GSH), a renewable energy company generating power from biogas captured through the treatment of palm oil mill effluent (POME) in Malaysia, announces progress on its second fully-owned biogas power plant, the 2.0MW Malpom plant located in Nibong Tebal, Penang, and provides an update on trading for the year to 30 September 2017.

The Malpom biogas power plant has received its certificate of initial operation date ("IOD") from the authorities and the Company expects to receive the formal certificate of commercial operation date ("COD"), which will allow the sale of power to Tenaga Nasional Berhad, the national utility company, at the full tariff rate, later this month. Malpom is the Company's first specialised self-contained lagoon-based system developed for mills with space constraints that prevent them from setting up a conventional biogas power plant.

The biogas production process at Malpom has been successfully optimised to maximise the efficiency of biogas capture, which has resulted in the plant generating more gas than expected with current readings reaching c. 2.3MW. The excess power produced from the extra gas will be channelled towards reducing the plant's operating and maintenance expenditure.

The Company's first fully-owned plant, the 2.0MW Kahang biogas plant, located in the state of Johor, which is a tank-based system, is generating power and being sold to the national utility company at the full tariff rate.

The Company continued to focus on securing long-term financing facilities from local finance providers. As previously stated, Green & Smart's ability to advance the development of its secured projects is dependent on the availability of adequate funding and, due to financial constraints, progress was slower than initially expected on a number of projects, in particular, those of Concord Green Energy, an associated company of Green & Smart, and the other five fully-owned biogas power plants. As a result, the Company expects to report revenues for the full year ended 30 September 2017 of approximately RM45 million. The Company is in advanced negotiations to secure funding which will enable Green & Smart to accelerate its projects in the current financial year.

Megagreen Energy ("MGE"), another associated company of Green & Smart, continues to progress its application for the IODs of the five completed Feed-in-Tariff approved biogas power plants. Once the COD is received, the Company anticipates revenue from the profit distribution through sale of power by these plants, as a result of its equity stake in MGE.

Saravanan Rasaratnam, Chief Executive Officer of Green & Smart, said: "We are incredibly excited that our second fully-owned biogas power plant will soon commence power sales at the full tariff rate to the national grid and we eagerly await receipt of the COD. This specialised lagoon system has been optimised to maximise efficiency, which will enable a reduction in operating costs. While the speed of development on some of the other projects is less than initially expected, we are in advanced funding negotiations that will enable us to make significant progress and we remain confident of delivering on our goal of becoming the largest provider of biogas-based renewable energy in Malaysia."

Please note the Company's new website: www.greennsmart.com.my

Enquiries

 
 Green & Smart Holdings plc 
 Saravanan Rasaratnam, Chief Executive 
  Officer 
  Navindran Balakrishnan, Chief Operations 
  Officer                                     [phone] 
 
 Cantor Fitzgerald Europe (Nominated 
  Adviser and Joint Broker) 
 Andrew Craig, Richard Salmond                [phone] 
 
 Beaufort Securities Ltd (Joint 
  Broker) 
 Jon Beliss                                   [phone] 
 
 Luther Pendragon Ltd (Financial 
  PR) 
 Claire Norbury, Alexis Gore                  [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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January 04, 2018 02:00 ET (07:00 GMT)