Carbon Capital to invest RM150m in biogas, biomass plants

March 3, 2008 (The Edge Daily) – Carbon Capital Corp Sdn Bhd will launch RM150 million worth of biogas and biomass projects in Sarawak next month as part of its long-term strategy for growth.

“We will be launching four biogas projects and one 10 megawatt biomass power plant there, utilising empty fruit bunches (from oil palm).

“These are all projects which we will be investing in and developing 100%,” Carbon Capital group managing director William Kho said.

The company also expected to launch more clean development mechanism (CDM) projects for the reduction of greenhouse gases in Sarawak in the future, and was currently working on two such projects in Negri Sembilan, Kho told The Edge Financial Daily.

Carbon Capital recently announced a RM2 billion investment to undertake renewable energy projects in Sarawak under the Sarawak Corridor of Renewable Energy initiative, with the products to be exported to Japan.

The projects, to be undertaken on a 51:49 basis with Japan Carbon Mercantile Co Ltd, comprises the development of a multi-feedstock biodiesel plant with bulking facilities, and a 100,000ha jatropha and oil palm plantation in the initial five-year phase.

“We didn’t come to be involved in biodiesel overnight. This is part of our long-term strategy. We want to support a balance of sustainable development in Malaysia, and we believe biodiesel is the future,” he said.

Kho said going forward, the company was looking at include landfill gas projects, animal farming to harness methane gas for rural electrification, and mini-hydroelectric projects.

It was also considering listing on AIM, the London Stock Exchange’s international market for smaller growing companies, although it had no immediate plans to list on Bursa Malaysia, he said.

The company’s businesses include investment in CDM and renewable energy, consulting services, the provision of biogas and biomass power plant technologies using wastewater, animal, municipal and plantation waste, among others, and carbon credit trading.

Waste for its biomass and biogas projects were currently gathered from other parties, he said.

Kho said the company has rendered its consultancy services to the Thai government, Asean and the World Bank for the development of sustainable energy frameworks, training curriculum for cleaner technology and the implementation of sustainable energy management systems in industries.

On carbon credit trading, he said the company currently worked with international trading houses and utility companies in Japan and other industrial countries which could purchase the carbon credits instead of undertaking expensive measures to reduce emissions.

He also said the company had a presence in Thailand, Japan and India, where its partner, Emergent Ventures India, had been consulted on more than 120 CDM projects.

According to Kho, Carbon Capital began as a joint venture between Thailand’s EEC group and Australia’s Energetics 13 years ago.

“The knowledge and experience that we gathered from our consulting has allowed us to venture into other areas,” he said.

On Malaysia’s renewable energy industry, he said it had huge potential, provided there were right incentives and awareness in place, adding that it was part of Carbon Capital’s effort to promote such awareness.

“We should not waste wastes. Create wealth from wastes. Ultimately, this is what we should all be doing,” he said.

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