KUALA LUMPUR: Kejuruteraan Asastera Bhd (KAB), via its unit, KAB Energy Power Sdn Bhd, is making its maiden foray in the cogeneration division through its acquisition of a 70% stake in Kiev Crg Sdn Bhd (Kiev Crg).
Kiev Crg has a contract to build, own and operate a captive cogeneration plant in Seremban for Careglove Sdn Bhd, KAB said in a statement today.
Cogeneration is the sequential production of power and the recovery of heat from a single primary fuel source.
The plants are widely used in developed countries due to their energy efficient nature, it added.
KAB said the plant has an installed capacity of 1.5 megawatt (MW) and is expected to generate 12,480 MW per hour of electricity.
“It is scheduled to commence operations within 10 months, after which the generated electricity and heat will be sold to Careglove Global Sdn Bhd for eight years under an energy purchase agreement, generating an expected RM47.8 mil in revenues,” it said.
The steady income stream is expected to contribute positively to the group’s overall profitability and improve earnings visibility, it added.
“This investment is an expansion of the group’s portfolio of energy assets and forms an integral part of the wider strategy to grow sustainable and recurrent income streams,” added KAB. – Feb 5, 2020, Bernama
