Mistral, a wholly owned Malaysian subsidiary of Timah, is principally engaged in the business of renewable energy generation. Mistral operates a Biogas Renewable Energy Plant (“Plant”) in Malaysia with nominal export capacity of up to 3.5 Megawatt (“MW”). The Plant uses Palm Oil Mill Effluent to produce Methane Gas, which is then used as fuel to run Gas Engines to generate green and renewable energy.
The Plant is located at Km 63 Jalan Sandakan, Sandakan in the State of Sabah, Malaysia, and next to Prolific Yield Palm Oil Mill owned and operated by Cepatwawasan Group Berhad with a processing capacity of 90 Metric Tons of Fresh Fruit Bunches (“FFB”) per hour.
Previously POME from this Mill was treated in a conventional open lagoon system with the biogas produced being emitted to the atmosphere. The Biogas Plant provides more efficient and controlled treatment of POME, whereby methane is captured and converted in gas engines into electricity.
On 9 February 2015, Mistral has obtained the Feed-in Approval from the Sustainable Energy Development Authority Malaysia (“SEDA”) to supply electricity to the national grid at the Feed-in Tariff rate.
Mistral has entered into a Renewable Energy Power Purchase Agreement (“REPPA”) with Sabah Electricity Sdn Bhd for a period of 16 years.