KUALA LUMPUR: Aluminium and stainless steel kitchenware maker CAM Resources Bhd said the company is not proceeding with its planned 7MW per hour renewable electrical energy power plant in Taiping, Perak.

The company said its directors, after due consideration and further reassessment on the project’s feasibility, decided not to go ahead with it and will surrender the approved feed-in tariff (FiT) quota for the project to the Sustainable Energy Development Authority (Seda).

The cancellation was mainly due to cost and its lack of expertise, CAM Resources said in a filing with the stock exchange.

“The decision to cancel the project is due to the increment on the total investment consideration of the project, which has reduced the rate of return on investment, and higher investment risk and business risk due to the lack of proven track record and lack of security in long-term fuel supply as well as lack of technical expertise,” it explained.

It added that as the project has not commenced, the cancellation of the project is not expected to have any material effect on its earnings this year.

CAM Resources is principally involved in the manufacturing and trading of aluminium, stainless steel, plastic and melamine kitchenware, besides the manufacturing and trading of crude palm oil and other palm products.

CAM Resources announced in November 2016 that its wholly-owned subsidiary Saluran Suriamas Sdn Bhd had received Seda’s FiT approval for the plant for a period of 16 years.

Later in June 2017, the company said another subsidiary Future Atlas Sdn Bhd obtained Seda’s green light for a 2,000MW biogas plant to sell renewable energy to Tenaga Nasional Bhd for 16 years.

CAM Resources’ share price closed 1.5 sen lower at 23.5 sen yesterday, with a market capitalisation of RM44.44 million.