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KOTA KINABALU, Thurs. (Dec 6, 2007) - The RM350 million combined heat & power (CHP) plant at the Lahad Datu palm oil industrial cluster (POIC Lahad Datu) will elevate Sabah's status in the arena of renewable energy, and generate 'green' income for the State.

"This project is Sabah translating words into action utilizing the vast quantities of biomass we have into energy and reducing emission of greenhouse gases," said Dr Pang Teck Wai, the chief executive officer of POIC Sabah Sdn Bhd.

POIC Sabah Sdn Bhd, which is wholly owned by the State Government of Sabah, signed an agreement with Eco Biomass Energy Sdn Bhd (EBE) today involving the sale of 20 acres of land at POIC Lahad Datu to EBE for the setting up of the CHP. The project is expected to cover 41 acres when it is fully developed.

Apart from the foreign direct investment, the CHP project will also make Sabah a role model in efficient use of energy in Southeast Asia, as well as an example for other palm oil industrial clusters in Malaysia.

By virtue of its ownership by Eco-Frontier of South Korea, EBE's investment in Lahad Datu also represents the transfer of expertise and technologies from one of the world's leading proponent in power generation from renewable energy.

"We can also look forward to many job opportunities in environmental technology at the CHP plant in Lahad Datu," Dr Pang added.

The key features of the project are, apart from it being completely run on renewable materials, the centralized stem and electricity supply which is so far unique in Southeast Asia.

Because of environmental friendly features, the project is eligible for benefits under the UN-sponsored Clean Development Mechanism, through which revenue in the form of carbon credits will be generated.

To investors in POIC Lahad Datu, the presence of a centralized steam supply system will save them the costs of having to install boilers to generate steam for their own use. This also has a positive impact on the environment because most factory boilers are running at low efficiency and waste energy.

Ismail Abdullah (4th right), a director of POIC Sabah Sdn Bhd exchanging documents with Chairman of Eco Biomass Energy Sdn Bhd, Mr. Cheoung Hae Bong (4th left) after the signing ceremony yesterday. The signing was witnessed by Y.A.B. Datuk Seri Panglima Musa Haji Aman.

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