CHE Group secures Philippines Biomass project
Since last year after CHE Group Bhd securing the Vietnam biomass power plant contract, the company has not stop since then. CHE continue to nurture the rest of the biomass projects in other countries. CHE Group has entered into a MoU with Full Advantage Inc. in the Philippines to develop a total capacity of 191 MW of electricity using the energy crops as feedstock for the biomass power plants located in the Philippines. With the total value of the contract worth USD480 million, there will be replications of total 16 biomass power plants constructed in strategic locations in the Philippines. This is CHE Group first biomass to energy project to be located in the Philippines that will develop over the next 5 years. For the first plant, the engineering work will commence in 2nd quarter of 2015 .
The power plant equipments and machineries will be manufactured and supplied by CHE Group from Malaysia. CHE Group who partner with European technologies companies Torftech Ltd from United Kingdom and ERK Eckrohrkessel GmbH from Germany has designed a ‘state-of-the-art” system utilizing energy crop as biomass fuel to generate electricity. With the technologies transfer from Europe, the products that CHE produced is now being labeled as ‘Buatan Malaysia’ (Made In Malaysia) products.
CHE Group being the biomass developer, has engaged TORCHE Energy Sdn Bhd, a joint venture between CHE Group and Torftech UK to be the main contractor to execute the project whereas the project management will be executed by the group’s sister company, WVEL Energy Sdn Bhd.
In conjunction to this project signing ceremony, CHE Group endorsed the share swap between UE Masai Works Sdn Bhd. CHE will hold 51% as majority share of UE Masai Works Sdn Bhd. UE Masai has been actively serving the Southern Johor industry for more than 3 decades. UE is a reputable industrial engineering company and according to Mr Chek Chong, CHE Group executive director , the merger between CHE and UE will further strengthen the engineering value chain of the group. This synergetic approach will create a stronger engineering capabilities to support the rapid growth of the company. UE Masai Works have its core business to provide chemical fertilizer processing technology. CHE is also collaborating with UE Masai Works to develop Biochemical fertilizer processing technology, which is in line with the group’s mission to mitigate climate change.
CHE Group Bhd has planned to fund the rapid business expansion from bank borrowings, foreign equities and capital market. The group has completed its Initial public offering pre-assessment from an independent body. As planned, CHE Group Bhd have schedule for its IPO to materialize in 2017.
Added Mr Chek Chong, “ for the past 6 years, our company has been actively promoting the advanced and efficient clean technologies to fight climate change and environmental issues. The climate and environmental pollution issues has worsen and we need to act fast. The following year, we are confident that more projects including in our home ground, will be secured and we will continue to foster closer relation with potential engineering companies to form synergetic engineering alliances to support our whole value chain businesses.