KUALA LUMPUR (Oct 9): Asia Poly Holdings Bhd's indirect 51%-owned subsidiary Asia Poly Bio Gas Sdn Bhd has received the Sustainable Energy Development Authority's (SEDA) feed-in approval to supply electricity in Malaysia under a 21-year contract.

In a statement to Bursa Malaysia today, Asia Poly Holdings said Asia Poly Bio Gas' renewable energy installation in Jeli, Kelantan, has an installed electricity generation capacity of 0.5 megawatt (MW).

Asia Poly Holdings said today Asia Poly Bio Gas received SEDA's feed-in approval certificate on Monday (Oct 7). The renewable energy installation will generate electricity using inputs including agriculture waste.

Asia Poly Holdings said the feed-in-tariff rate for electricity generated at the installation is 38.35 sen per kilowatt hour (kWh). The 21-year contract's effective period starts from the scheduled feed-in tariff commencement date on Sept 30, 2022 while the distribution licensee for the project is Tenaga Nasional Bhd, according to Asia Poly Holdings.

"The rationale of venturing into the biogas project is to create a steady income for Asia Poly Group. The biogas project is expected to contribute positively to the Asia Poly Group's earnings and net assets in the future.

"Asia Poly Bio Gas is a company incorporated as a private limited company in Malaysia on July 10, 2019. The director of Asia Poly Bio Gas is Datuk Yeo Boon Leong and the shareholders of Asia Poly Bio Gas are Asia Poly Green Energy Sdn Bhd (51%) and Musteq Green Renewable Sdn Bhd (49%). Asia Poly Green Energy is a wholly-owned subsidiary of the company (Asia Poly Holdings)," it said.