Sandakan-1 and Seguntor Biomass Power Plants

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In August 2006, Kina Biopower and Seguntor Bioenergy started construction of two 10 MW power plants using empty fruit bunches as fuel in Sandakan, Sabah. The project had been registered as a CDM (Clean Development Mechanism) project with the UN, and was expected to generate CO2 emissions credits. The power plant was slated to begin operations in March of 2008 with an estimated cost of US$25 million. The produced electricity would be sold to Sabah Eletricity Sdn Bhd under long purchase agreement. Kina Biopower Sdn Bhd is a joint venture of Chubu Electric (Japan, 18%), GoBio (Malaysia, 40%), SMEC (Malaysia, 30%), and Agritech Marketing Co. Ltd (Japan, 12%). The project scheme was that Chubu Electric would provide the loan in return Chubu would receive CO2 emission credits (approximately 2 tons). Hong Kong Shanghai Bank Co (HSBC) handled the financing of the loan. The both power plants have been in commercial operation since mid January 2009.