THS Bio-Energy Cogeneration Plant, Kunak

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In 2002, TSH Bio-Energy began development of a 14 MW biomass-fired power plant at the Kunak palm oil mill at Tawau in Sabah State. The plant would run on waste products from the oil palms. The project was to provide power for the plant, and to sell excess power (up to 10 MW) to Sabah Electricity (the Sabah state utility, 80% owned by Tenaga Nasional Bhd) at 21.25 sen/kWh (US$ 5.592 cents per kWh) under a 21-year power purchase agreement signed in October 2002. TSH Bio-Energy was a subsidiary of TSH Resources Bhd, a Malaysian resource-based manufacturer with operations in palm oil milling and plantation, timber flooring manufacturing, cocoa products manufacturing and forest management. Financial closure was obtained in May 2002. The project cost RM 47 million (US$ 12.3 million), and was financed by equity from TSH Resources and loans from the Islamic Private Debt Securities Issuance Programme, Al-Murabaha Commercial Papers/Medium Term Notes arranged by Aseambankers Malaysia Berhad. Construction began in 2003, and the plant entered operations in 2004. In 2002, TSH Bio-Energy was considering building similar bio-mass powered plants at other palm oil mills in Sabah. In 2012, TSH Resources Bhd entered into a new PPA with Sabah Electricity Bhd, supplying power for a period of 9 years at a rate of 30 sen per kWh (US$9.8c/kWh), superseding the previous price of 21.24 sen per kWh (US$6.68/kWh). Combines some info from Sabah Biomass Power (hidden project, id 942) which seems to refer to the same plant.