KFHMB Concludes Hallmark Deal in Biogas Green Power Project
Kuwait Finance House (Malaysia) Berhad (KFHMB) has concluded a hallmark deal in providing a financial solution structured according to globally accepted Shariah-based principles for a biogas green power project in Malaysia recently. The financing facilities are for the BELL Group of Companies. The Group is the first Malaysian renewable energy project developer capturing methane gas from Palm Oil Mill Effluent (POME) for electricity generation that is connected to the national grid.
YBhg. Dato’ K. Salman Younis remarked, “We are pleased that KFHMB has provided a Shariah-based solution to complement the financial needs of our customer. I am delighted that the teams at BELL Group and KFHMB have successfully collaborated in the biogas power plant project to convert waste by-products into green energy, to be connected to the national grid.”
He further commented, “We are in full support of the biogas green power project, which will combat uncontrolled emissions into the atmosphere, harmful greenhouse gases that are causing global warming. This project is in line with the Kyoto Protocol initiatives and is also in tandem with the Malaysian Government’s fifth fuel strategy. The efforts, which would help Malaysia to become less dependent on fossil fuels power generation, will alleviate the country’s financial burden from rising fossil fuel prices.”
YBhg. Datin Dr Wong Kwi Lian, a director of Bell Group stated, “BELL Group is blessed and fortunate to be in the palm oil industry that has allowed us to be pioneers in several industry related innovation. We are even more fortunate now that we have found a partner who can enhance our efforts. Kuwait Finance House – Malaysia, which has seen many successes in structuring innovative financial solutions according to Islamic principles of Shariah, is our strategic partner which can complement our efforts in environmental friendly projects.”
POME is a major waste stream left by the extraction process of fresh fruit bunches (FFB). In current practices by most palm oil millers, the treatment of POME in anaerobic lagoons to reduce the biochemical oxygen demand (BOD) to acceptable levels for irrigation purpose has resulted in uncontrolled emission into the atmosphere of methane (CH4) gas, which is extremely harmful compared to carbon dioxide (CO2).
The biogas green power project activity is expected to reduce large quantities of methane gas which are released into the atmosphere from the anaerobic decay of POME in the lagoons, thus reducing carbon footprints in the palm oil industry.
By turning waste by-product into energy, BELL Group stands to benefit from the sale of green energy to Tenaga Nasional Berhad (TNB) grid under Small Renewable Energy Power Programme (SREP), savings in energy cost to palm oil mill, sale of Certified Emission Reductions (CER) under Kyoto Protocol’s Clean Development Mechanism (CDM) scheme and tax incentive arising from its Pioneer status.
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