Two Megawatt Biogas Projects in Malaysia

Camco International Limited (UK), a global developer of clean green energy projects and solutions to reduce greenhouse gas emissions, have recently announced their first biogas clean energy project for Camco Southeast Asia ("Camco SEA").

Based in Malaysia the biogas project is aimed at using anaerobic digestion in order to recover biogas containing methane from palm oil effluent ("POME"). This project hopes to deliver 2MW and will be amongst the largest of this type so far that will supply the Malaysian grid.

Camco SEA has acquired the rights to develop the project through the acquisition of Biopower Climate Care Holding SDN Bhd a fully owned subsidiary of Rhodia Energy GHG (France). Camco SEA will continue the construction of the project, with completion of the plant expected in early 2013. Total costs anticipated to be incurred by Camco SEA in developing the project to completion, including the above acquisition, are anticipated to be approximately US$4 million.

Waste from the areas 1,000 plus Palm Oil Plantations is a major issue for owners of plantations and other inhabitants in the region as it significantly contributes to total emissions. The Malaysian government have recently launched a renewable energy feed-in tariff in order to promote the extraction of energy and power from waste. They are hoping over the coming years that Palm Oil producers will begin to reduce the waste produced from their production processes.

The electricity will be sold to the grid through a renewable energy power purchase agreement (“RE PPA”) to be entered into with one of the Malaysia utilities, under the renewable energy feed-in tariff which sets a guaranteed off-take price for the duration of the project.

This Palong project is seen by Camco SEA as one important step towards developing various different energy projects across southeast Asia. Camco SEA believe they have significant expertise and local knowledge to help push towards their goal and become the leading player in "emissions to energy" market in the area.

Kent Carter, Managing Director of Camco Southeast Asia said: “I am very pleased with our acquisition of the Palong biogas project, as it strengthens Camco SEA’s market position in the biogas development business, one of the fastest growing areas of renewable energy development in the region.”

Scott McGregor, CEO of Camco said: “I am excited to see our strategy of developing and owning clean energy assets extending to South East Asia. Strategically the biogas industry in South East Asia is a key sector to reduce emissions across the region and with our experience and resources available globally we are well positioned to lead this sector.”