The agreement was reached following a meeting between Prime Minister Commodore Voreqe Bainimarama, Tropik Wood chief executive officer and chairman Faiz Khan and Gimco Co. Ltd.'s chairman Sang Sun Lee.
Gimco is a limited liability company specializing in cogeneration plants based on LNG, biomass systems in the multi-MW range, ESCO schemes, high efficient industrial furnaces, biomass gasification and air pollution control systems.
Gimco’s sister energy company Kenertec has existing biomass and co-generation operations in Korea, China, Indonesia and Cambodia.
The joint venture agreement will initially involve the export of biomass chips or pellets. The joint venture is also looking at expanding into rural gasification and Independent Power Production (IPP).
At a joint announcement of the deal Prime Minister Bainimarama applauded the two entities for their efforts, and offered government’s full support to the joint venture.
He emphasized that with the technological advantage possessed by GIMCO and the resources by Fiji Pine and its subsidiaries, the JV must also look at developing biomass gasification projects for rural Fiji.
He also acknowledged GIMCO’s confidence in taking the challenge to develop biomass fired electricity, which is a good substitute for fossil fuel and reduces our reliance on imported oil.
Tropik Wood chairman Faiz Khan said there was a demand for waste-wood fuel by GIMCO and Tropik Wood Industries was in a position to supply out of its Wairiki operations. Currently TropikWood has no use for this in Wairiki.
"GIMCO's current and immediate demand is our bark waste that is a by-product of wood chip processing and other forms of biomass fuel such as branches that are left behind immediately after harvesting," he said.
"The JV provides a good opportunity for Tropik to utilize all forestry and agriculture waste," he continued. "Tropik will sell this waste to the JV that in turn will process it for exports thus maximizing on pine wood usage. The JV will sell to the highest bidder in the open market.”
"This is in line with the company’s strategic policy of diversifying our product base as well as our customer base,” Khan added. “With Kenertec's technology in cogeneration and our resources, the match is excellent for the future as we look at developing new power schemes in Fiji.”
Gimco Chairman Lee said his firm is looking forward to sharing their expertise and experience with Tropik Wood Industries.
"Everything is ready and we can start to install the facilities in Fiji as soon as possible since we have our own market in Korea,” Lee said. “In Fiji, they only export high quality chips and other products they throw away. That is what we can use; everything else that is thrown away in the forestry and agriculture sectors in Fiji."
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