KUALA LUMPUR: BM Greentech Bhd

’s wholly-owned subsidiary, Boilermech Sdn Bhd, has inked a Memorandum of Understanding (MoU) with QL NutriFood Sdn Bhd and Synbio Power Sdn Bhd to provide a framework for the parties' collaboration through a special purpose vehicle (SPV), namely BM BioEnergy Innovations Sdn Bhd, setting out their participation in the venture.

Boilermech and QL NutriFood each holds a 40 per cent equity interest in BM BioEnergy Innovations while Synbio Power holds the remaining 20 per cent equity interest.

In a filing with Bursa Malaysia, the green tech company said the SPV is intended to develop, construct, operate and own an eight megawatt (net export) co-generation biomass power plant in Hutan Melintang, Perak, with an estimated project value of RM110 million.

Meanwhile, Boilermech will be the turnkey engineering, procurement and construction contractor, undertaking design, manufacturing, delivery, installation, testing, and commissioning as well as project management, and operations and maintenance support for the biomass power plant, targeted to be commissioned within three years.

BM GreenTech said the project is expected to be completed by the third quarter of 2029 with the Feed-in Tariff to be effective for a period of 21 years from approval date. - Bernama