Green & Smart Holdings plc Malpom Plant Progress and Trading Update (9096A)
04 January 2018 - 6:00PM
UK Regulatory
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 +603 2095 0024
Cantor Fitzgerald Europe (Nominated
Adviser and Joint Broker)
Andrew Craig, Richard Salmond +44 20 7894 7000
Beaufort Securities Ltd (Joint
Broker)
Jon Beliss +44 20 7382 8300
Luther Pendragon Ltd (Financial
PR)
Claire Norbury, Alexis Gore +44 20 7618 9100
This information is provided by RNS
The company news service from the London Stock Exchange
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