CHE Metal Works Sdn Bhd, an established engineering company in Malaysia has recently signed a contract value at over USD$27 million with Hau Giang Power Plant, a power plant developer in Vietnam in conjunction with the Asia Biomass Conference held last month in Kuala Lumpur.

The signing ceremony is witnessed by the Ambassador and head of the delegation of the European Union to Malaysia, His Excellency Luc Vandebon. The first of its kind 10 Megawatt biomass power plants incorporate with the advanced technologies, Torbed Reactor developed from United Kingdom will not only generate efficient renewable energy, but will also yield quality ash, suitable to produce concrete or chemical. The power plant will utilize rice husk as biofuel to generate electricity and the electricity will be supplied to the national grid. The company stated that the project is anticipated to be completed by 2015. The complete power plant will be constructed in CHE facility located in Johor Bahru.

According to Mr Chek Chong, CHE group business director, the company consider this as a program instead of a project as upon successful commissioning of the first plant, an immediate action to ‘rollout’ another 16 to 18 similar plants with total capacity around 200MW electricity  will follow.

This is a high impact program to the company and Chek mentioned that they are currently planning to raise around USD 600 million funds to support their ‘rollout’ program, including in the discussion with some engineering companies in both local and regional to develop synergetic engineering and manufacturing joint venture collaboration. CHE is also planning to set up another new manufacturing facility in Vietnam to support the program. The Vietnam new facility will incorporate similar operational management system as the existing Malaysia facility.