Green & Smart Holdings plc Update on Kahang Biogas Plant and Other Projects (1652J)

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RNS Number : 1652J

Green & Smart Holdings plc

07 September 2016

7 September 2016

Green & Smart Holdings plc

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

Update on Kahang Biogas Plant and Other Projects

Green & Smart Holdings plc, a renewable energy company generating power from biogas captured through the treatment of Palm Oil Mill Effluent (POME) in Malaysia, provides the following update on the various projects owned by the Group and one of its associated companies, Megagreen Energy ("MGE").

Projects owned by Green & Smart

The Group is pleased to announce that the first plant, the 2.0 megawatt Kahang Biogas Plant located in the state of Johor, has been completed on schedule. The Group has completed testing of the biogas production system and live testing of power generation from the plant will be undertaken during the second half of September 2016 by the Sustainable Energy Development Authority of Malaysian (SEDA) and Malaysia's main utility company, Tenaga Nasional Berhad (TNB). GSH will record immediate revenues as power generated for transmission over the national grid during the testing period will be sold to TNB.

Green & Smart is also delighted to confirm that construction of the 2.0 megawatt Malpom Plant in Nibong Tebal, Penang is on track for completion by end of October 2016. The biogas system has been completed with commissioning work underway. Final work on the gas engine room is in progress with intensified focus by the team on carrying out the interconnection work. Construction of this plant has been financed by the Group from internal sources of funding and cashflows generated from its EPCC contracts with MGE. The Group will apply for dates for power generation testing with SEDA and TNB at the appropriate time.

Projects owned by MGE

The Group is the EPCC contractor for the construction of five biogas power plants to be built for MGE. The Group has completed the construction of three of these plants, including the works required under the variation order announced on 29 June 2016, and the plants have been handed over to MGE. Construction work on the remaining two plants is scheduled for completion in December 2016.

Mr. Saravanan Rasaratnam, Group Managing Director of Green & Smart, said: "The completion of the Kahang plant is a proud moment for all of us as we make the successful transition to become an independent power producer, supplying electricity to the national grid. We are fully committed to delivering on time and on budget the remainder of the 24 contracts awarded to us and supporting the Government of Malaysia's efforts to meet its targets for the supply of energy delivered from renewable sources."

Enquiries:

 
 Green & Smart Holdings plc 
 Sivadas Kumar                     [phone] 
 
 SP Angel Corporate Finance 
  LLP 
 Robert Wooldridge, Stuart 
  Gledhill                         [phone] 
 
 Luther Pendragon Ltd 
 Harry Chathli, Claire Norbury, 
  Alexis Gore                      [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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September 07, 2016 02:01 ET (06:01 GMT)