Timah Resources Limited (ASX: TML) (“Timah Resources” or “Company”) is pleased to announce that the Company’s wholly owned subsidiary, Mistral Engineering Sdn Bhd (“Mistral”), will replace the engines presently used at the Company’s Biogas Power Plant in Malaysia with more efficient biogas engines. This replacement has been approved by Sustainable Energy Development Authority Malaysia (SEDA Malaysia) and will improve the Power Plant’s efficiency and generated revenue.
Timah Resources will replace four existing engines (1 x 1.204 MW engine, 3 x900kW engines) with three new 1.200MW biogas engines, made and assembled locally (Malaysia). These new biogas engines will meet SEDA Malaysia’s bonus criteria that require the units to have an electrical efficiency above 40%. The local assembly of the engines also meets the additional bonus criteria.
SEDA Malaysia is the key statutory body in Malaysia that controls the feed-in tariffs relating to renewable energy and promotes sustainable energy solutions throughout the country. By replacing these biogas engines and meeting SEDA Malaysia’s bonus criteria, Timah Resources will be awarded a higher subsidy per kilowatt hour (per-kWh) for the energy generated and sold.
The new biogas engines are expected to generate an additional revenue estimated around AU$1.59 million (RM$5 million) per annum, in comparison to the existing revenue before the engine replacement. The new engines will be expected to achieve higher operational efficiency, lower maintenance costs and improved plant performance.
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