3 October 2002 – Malaysia’s state-owned power company Tenaga Nasional Berhad (TNB) has agreed in principle to buy electricity generated by Felda using biomass technology.
TNB chairman Datuk Dr Jamaluddin Jarjis said a TNB subsidiary, Tenaga SPL Sdn Bhd, and Felda was experimenting the effectiveness of oil palm husks in power production.
“Soon we will sign an agreement to buy electricity from Felda so the project can succeed,” he told reporters after attending a Felda function near here today. Dr Jamaluddin is the member of parliament for Rompin.
Felda chairman Tan Sri Dr Yusof Noor, who was present, said the agency would construct four power stations powered by oil palm husks, as part of Felda’s downstream activities.
Dr Jamaluddin said Felda would supply 20 MW of electricity to each of the power stations.
TNB will buy the electricity at 18 sen per unit. At present, it is paying 12 sen for gas generated electricity and 13 sen for coal produced power.
“Even though we will buy from Felda at a higher price, we will only be distributing to customers in the areas concerned…no grid cost is involved here,” he added.
1 MALAYSIAN RINGGIT = 0.2632 US DOLLAR (USD)