Continental Energy has purchased a 10% stake in Tawau Green Energy (TGE) from an existing TGE shareholder for $2m, pursuant to a share sale and purchase agreement.
TGE will invest $133m to build, own and operate a volcano related geothermal resource known as Apas Kiri in southern Sabah near the city of Tawau; commissioning is planned for 2014.
TGE has signed a power purchase agreement (PPA) with Sabah Electricity (SESB) to supply the power generated from the 30MW plant to the SESB’s East Coast Sabah power grid.
TGE managing director Ramzi Raad said, "With our PPA in place and other supporting contracts and approvals either in place or in final stages of completion, we are now shifting our corporate focus to implementing development of the Apas Kiri geothermal resource."
Under the terms of the agreement, Continental’s CEO Richard L. McAdoo has accepted the role of TGE’s director and will also act as TGE’s geotechnical director.
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By GlobalDataThe plant validated with the United Nations Framework Convention on Climate Change under its Clean Development Mechanism programme can now earn certified emission reduction (CER) credits.
The plant is expected to reduce carbon emissions by 282,400 metric tonnes per year and earn the same number of CERs.
TGE under an agreement with a third party carbon credit solutions
