BALAKONG (June 23): KNM Group Bhd expects its overseas international renewable energy (RE) projects to contribute to its earnings by as early as the first quarter of financial year 2016 (1QFY16).
KNM Group chief executive officer Lee Swee Eng said its 72% stake in a biofuel plant in Thailand is expected to contribute 10% to the company's net profit in FY16.
"We expect that the plant will be producing ethanol by 1QFY16," he told reporters after the company's annual general meeting (AGM).
"We will also be getting eight years of incentives from the Thai government," he added.
Phase 1 of the biofuel plant is capable of producing between 200,000 litres to 400,000 litres of ethanol a day.
Lee said Phase 1 of the RM2 billion waste-to-energy plant in Peterborough, United Kingdom (UK) is expected to contribute 25% to earnings in financial year 2017 (FY17), generating 17.6 mega watt (MW).
On the company's order book, Lee said it currently stood at RM4 billion, including its waste-to-energy Peterborough project.
He said 20% of the company's order book comprises Malaysian jobs, but the company is looking at increasing the portion with downstream works from the Pengerang Integrated Complex.
He also said the company's overall tenderbook stood at RM13 billion to RM14 billion, with about RM5 billion worth of projects from Pengerang.
He reiterated that construction work on the Peterborough plant is slated to begin in the fourth quarter of financial year 2014 (4QFY14) and is expected to begin generating income from the third quarter of financial year 2017 (3QFY17).
Lee said the entire capacity of the Peterborough project is 80MW.
The company has purchased 52 acres of land in Peterborough to set up the plant which will occupy 30 acres, with 22 acres left for other projects.
KNM Group chairman Datuk Ab Halim Mohyiddin said the company is looking at other RE projects in Malaysia, particularly biomass plants.
"We are talking to some plantation companies. If they have a project, we will be interested," he added.
KNM Group has been appointed as a contractor to produce equipment for waste-to-energy as well as biomass plants.