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|A rice mill of Angkor Kasekam Roongroeung Co. in Kandal Province near Phnom Penh (Photo courtesy of Aura Green Energy)|
The two companies plan to build a plant for power generation using rice husk as fuel in a rice mill near Phnom Penh, along with solar panels.
Under the 400 million yen (3.7 million USD) project, the combined green energy facilities, with a total output capacity of 1,500 kW, will supply power to the rice mill of Angkor Kasekam Roongroeung Co., a major local rice producer, in Kandal province adjacent to the capital, with a plan to sell any surplus to a local power company.
The two Japanese companies established a joint venture in Cambodia in February for the business.
The project is partly subsidised by the Japanese government, at about 110 million yen, under the Joint Crediting Mechanism, a greenhouse gas emission reduction plan to exchange reduced carbon dioxide emissions.
Aura Green Energy estimates the project will contribute to cutting 1,316 tonnes of CO2 emissions annually from the biomass power generation and 565 tonnes from solar power.
The renewable energy producer is undertaking biomass and hydropower generation projects in Indonesia.