Sino Construction commences execution of Micro Power Plants in South Korea

The first MPP will operate in April.

Micro Power Plants, or MPPs, are finding easier ways to enter the market as developed countries implement preferential tariff rates for renewable fuel sources used in power generation.

According to a media release, Sino Construction Limited announced that Magnum Modular Power Generation Pte Ltd (“MMPGPL”) registered in Singapore; a joint venture subsidiary with Primeforth Special Situation Fund Limited, has commenced execution of its Micro Power Plants (“MPPs”) construction strategy in South Korea.

Initial deposits have been paid for the construction of the first MPP with another starting construction within 30 days. The Company is targeting the turnkey operation of the first MPP named “KOREA MPP ONE” by the 10th of April 2015, dependent on the normal approval processes by the City of Pohang and the Korea Power Exchange.

MMPGPL is set up to undertake the business of power generation, through proprietary Micro Power Plant (MPP) technologies; with additional focus on multiple fuel feedstocks namely, biofuel and CVO. The Company is now focusing on rolling out MPPs in the developed South Korean market. This is due to the attractive tariffs and a liberalized market for power generation in South Korea.

Mr. Drew Madacsi, Executive Director of Sino Construction Limited, said: “We are seeing a growing global trend of developed countries implementing preferential tariff rates for renewable fuel sources used in power generation, so as to reduce carbon emissions. This has resulted in immense market opportunities for entrants like MMPGPL, to build a long term, stable margin business. The conventional power generation technologies are capital investment intensive, the transmission infrastructure is huge, the building and commissioning period can be years and is often still outstripped by growing demand; in both developed and developing countries.”

MMPGPL’s Micro Power Plants are modular, portable and use proprietary technologies that allow multiple fuels including biofuels. In addition, the MPPs are commissionable within 12 weeks. Another unique feature is the ability to either supply on grid or be standalone, which offers national utilities and power consumer’s unrivalled flexibility.