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Blue Capital Management Acquires Malaysian Firm for Palm Shells

2020/02/06 10:08
Sousuke Kudou, technical writer
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A place for collecting palm shells in Malaysia (source: Blue Capital Management)
A place for collecting palm shells in Malaysia (source: Blue Capital Management)

Blue Capital Management Co Ltd (Minato-ku, Tokyo) announced Jan 16, 2020, that it has concluded an M&A agreement to acquire 95.0% of the shares of Perima Energy Resources Sdn Bhd (PER).

PER is a Malaysia-based company that collects and sells palm shells. According to the announcement, Blue Capital Management signed the M&A agreement because PER can secure 480,000t of palm shell fuel per year in West Malaysia. Hideo Harada, chairperson and CEO of Blue Capital Management, became the chairperson of PER Jan 16, 2020.

In December 2019, Blue Capital Management signed a contract with Malaysia-based Blossom Bio Energy Sdn Bhd, which is 97.25% owned by Blue Capital Management, to purchase 600,000t (up to 750,000t) of palm shell fuel per year for 20 years. The latest M&A agreement with PER enabled Blue Capital Management to secure 1,080,000t of palm shell fuel per year in total.

BCM Sg, which is affiliated with Blue Capital Management, manages PER and Blossom Bio Energy in an integrated way to stably supply palm shell fuel to Japan. As a result, it will enable Blue Capital Management to supply all the fuel necessary for biomass power generation projects that it is currently developing in Handa City (Aichi Prefecture), Hamamatsu City (Shizuoka Prefecture) and Shiraoi-cho (Hokkaido) to generate electricity.