KOTA KINABALU: Tokyo-based Blue Capital Management Ltd will invest RM100 million to start a biomass energy plant in Sabah’s Lahad Datu Palm Oil Industrial Cluster (POIC).
An agreement signed among POIC Lahad Datu, Sabah firm Blossom Bio Energy and Blue Capital includes a 20-year lease agreement in POIC Lahad Datu Estate.
Under the deal signed in Tokyo, Japan, today, Blossom Bio Energy and Blue Capital will jointly undertake the construction of the renewable energy factory.
The plant is expected to source Sabah palm oil kernel and empty shells as raw materials to produce renewable energy, with Blue Capital using its energy storage system to export the product to Japan.
The signing ceremony was witnessed by Sabah Chief Minister Shafie Apdal, who is leading an investment delegation from Sabah to Japan. Also present were Deputy Chief Minister and state Trade and Industry Minister Wilfred Madius Tangau and state secretary Safar Untong.
POIC Lahad Datu was represented by its CEO Pang Teck Wait, Blue Capital by its president and CEO Hideo Harada, and Blossom Energy by its president and chief operating officer Jeffrey Lu.
Shafie said the signing of the agreement signalled a great success for Sabah as it would not only help in the development of the state’s economy through the palm oil industry, but also open up new job opportunities for Sabahans, especially those in Lahad Datu.
“The trade mission to Japan has met one of its objectives with the signing of the agreement with Blue Capital.
“I am optimistic that this joint effort will bring in not just investments but also jobs for our people,” he said.
Blue Capital, which has been involved in the biomass energy storage system since 2018, plans to build three power stations – in Hokkaido, Shizuoka and Aichi in Japan.
The company needs about 750,000 tonnes of empty palm oil kernels a year for its power generation programme.
Another firm with interest in renewable biomass energy from Japan is expected to sign a deal with POIC Lahad Datu in Kota Kinabalu later this month.
This will bring the total investment at POIC Lahad Datu from Japan for renewable biomass energy close to RM300 million.