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Press Release

GE Signs Agreement with Green and Smart Sdn Bhd to Jointly Develop Biogas-to-Power Solution for Malaysian Power Market

March 20, 2014

KUALA LUMPUR, 20 March, 2014 --- General Electric (GE) has signed an agreement with Green & Smart Sdn Bhd (GNS) to jointly develop a Palm Oill Mill Effluent (POME) biogas-to-power solution for Malaysia. The agreement was signed during the launch of GE's new Distributed Power business recently.

This agreement sets up the general framework for GE and GNS to cooperate with each other in the exchange of information to assess, develop and implement the first Palm Oil Mill Effluent (POME) Biogas Independent Power Producer (IPP) under this joint exercise as well as the joint development of POME Biogas to the power market in Malaysia. GE's support will encompass expertise in gas engines technology and resources to support a joint development program on POME biogas-to-Power potential within the Palm industry in Malaysia.

This strategic alliance will provide a proven solution for waste-to-power using GNS' patented technology whereas GE will provide their engines which feature long service intervals, a maintenance-friendly engine design and low fuel consumption, thereby ensuring maximum efficiency while optimised components prolong service life.

The current usage of renewable energy generated by biogas, solar and biomass is at 1.5 per cent and the Sustainable Energy Development Authority of Malaysia (SEDA) targets 11 per cent renewable energy usage by consumers and the industrial sector by 2020. Through this partnership, GE and GNS will be able to contribute to realising these targets.

Further, this agreement sets a landmark for cooperation with Felda Global Ventures (FGV) in the palm oil sector. Through this collaboration, a biogas power generation facility from POME waste will be established at a new oil palm mill site at FELDA Kahang in Kluang, Johor. This project will be the first Build Operate Own (BOO) model with FGV and is expected to begin operations by December 2014.

The collaboration between GE and GNS contributes to reducing carbon emissions created by palm oil mills -- an Entry Point Project (EPP) under the Palm Oil and Rubber National Key Economic Area of the Government's Economic Transformation Programme (ETP). Through this EPP, the Gross National Income by 2020 is projected at RM2.9 billion. This project provides a long-term solution to treat waste created by palm oil mills, which is a significant contributor to waste in Malaysia. Effluent waste discharged from mills is a major pollutant with significant effects to the environment - rivers which are a source of livelihood for many rural villages have been affected.

Recently, the Government through SEDA has placed a bigger emphasis on the palm oil industry as it strives to encourage the use of homegrown technology and content in moving towards a knowledge-based and service-oriented economy. Stuart Dean, the CEO of GE ASEAN added, "GE fully supports SEDA's decision towards encouraging more participation from the palm oil industry as they are seen to be practical enablers in promoting the use of local technology and content. This is highly relevant especially since Malaysia is one of the world's major producers and exporters of palm oil and palm oil products. In view of this, the GE and GNS collaboration comes at a pertinent time as the emphasis moves towards the palm oil industry."

As the world's second largest producer and largest exporter of palm oil, this is a natural opportunity for Malaysia to capture. GE and GNS have partnered together, supporting the Government's initiatives in reducing greenhouse emissions, turning it into clean energy and in turn contributing to Malaysia's cumulative installed renewable energy capacity targets.

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About GE Power & Water
GE Power & Water provides customers with a broad array of power generation, energy delivery and water process technologies to solve their challenges locally. Power & Water works in all areas of the energy industry including renewable resources such as wind and solar, biogas and alternative fuels; and coal, oil, natural gas and nuclear energy. The business also develops advanced technologies to help solve the world's most complex challenges related to water availability and quality. Power & Water's six business units include Distributed Power, Nuclear Energy, Power Generation Products, Power Generation Services, Renewable Energy and Water & Process Technologies. Headquartered in Schenectady, N.Y., Power & Water is GE's largest industrial business.

Follow GE Power & Water on Twitter @GE_PowerWater and on LinkedIn. To hear the latest news and conversations for Distributed Power, use the Twitter hashtag #DistributedPower.

For more information, contact:
Zatalini Zulkiply
Communications Manager
GE Malaysia
+603 2267 1892
[email protected]

Zatalini - Zulkiply
[email protected]

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