Brewery to tap solar power for expanded beverage line

Jan 24th at 10:35
24-01-2017 10:35:45+07:00

Brewery to tap solar power for expanded beverage line

Khmer Beverages, the maker of Cambodia beer, is nearing completion of an expansion to its brewery on the outskirts of Phnom Penh that will nearly triple its production of beer and add new beverage lines, as well as what could be the largest deployment of an industrial solar panel array in the Kingdom.

The company has sunk $120 million into expanding its production facility on the capital’s southern flank, its president, Peter Leang, said yesterday during the signing ceremony of a memorandum of understanding (MoU) with local firm Kamworks Utility for the installation of solar panels on the roof of the building complex.

He said the new investment will push total capital expenditure in the beverage plant to over $200 million.

The expansion adds 2.5 hectares to the factory’s footprint and new equipment for producing both beer and non-alcoholic beverages. Partial operation is expected to begin later this week, with the remaining production lines expected to come online by March.

“We changed our name from Khmer Brewery to Khmer Beverages because we will expand our production line with a new variety of products that have not yet been launched,” Leang said.

“The new capacity for beer products will be 5 million hectolitres per year and our capacity for other products will be 3 million hectolitres, with space for an additional 2 million hectolitres reserved for further production of the new beverages that gain popularity in the market.”

The current facility, opened in 2011, has a capacity of around 1.8 million hectolitres per year, according to a company representative.

“In the previous facility, we could process 60,000 cans an hour, but the expansion will add an additional capacity of 90,000 cans an hour,” he said.

The representative added that beer cans make up over 90 percent of current production at the factory, with the remainder filled by bottles and kegs.

“The expansion will include facilities to produce a variety of beverages, including juices, bottled water and energy drinks,” he said.

“Once the factory is fully operational, we will look into producing new beer brands.”

The expanded facility will be one of the first factories in Cambodia to produce its own PET preform, the material used to produce plastic beverage bottles, Leang said yesterday. This will allow the company to have the entire plastic bottle production process in-house, reducing costs, he said.

Crowning the expanded building complex will be an array of up to 10,000 solar panels, according to Ken Bradley, utility director of business development at Kamworks. The installation, the solar energy company’s biggest to date, would allow the beverage factory to significantly reduce its power costs.

According to Bradley, the project will follow a lease model, where Khmer Beverages will purchase the energy produced from the panels directly from Kamworks.

Arjen Luxwolda, chief operating officer of Kamworks Utility, said that the exact percentage of energy the factory will receive from the solar panels has not yet been determined.

“We have seen that for the current factory that is already in operation, that 2 megawatts would fit, and since the new factory will be around 2.5 times as big, we estimate that at least 4 megawatts is possible,” he said.

Luxwolda added that factories that operate every day of the year, such as a brewery or beverage plant, were currently the best candidates for solar projects in Cambodia as the continuous daytime production of energy from the panels would not be wasted on weekends or holidays.

He added that for solar to really have an impact in the country, the government would need to allow companies or individuals to sell back excess electricity to the national grid through net metering.

“Net metering needs to be the issue everyone is talking about,” he said. “Without it we cannot make major progress with solar energy in Cambodia.”

phnompenh post



NEWS SAME CATEGORY

Fish farm project on the table

A Chinese firm and its local partner have floated a proposal for a $100 million aquaculture project in Cambodia that would include fish farms, a feed mill and a...

Geared up for moto assembly

Business tycoon Try Pheap yesterday celebrated the launch of a new subsidiary company, Try Pheap Grand Royal, a motorcycle assembly plant in Kandal province, by...

Cassava industry left out to dry

With the start of the dry harvest season for cassava kicking off, farmers are calling for the government to support the struggling sector with initiatives to...

Local Fine cigarette maker quits cold turkey

The local manufacturer of Fine cigarettes has severed ties with UK-based tobacco giant Imperial Tobacco, a company official said yesterday, while declining to shed...

Construction industry cooling down: analysts

Government revenue collected on property transfers and construction services dropped off by 25 percent last year, reflecting a slowdown of the Kingdom’s...

Growing in a hungry market

The food and beverage industry has seen explosive growth in recent years, with new brands entering the market and existing chains continue to expand. The Post’s Hor...

Firmer prospects as rubber rebounds

Cambodia's beleaguered rubber industry looks set for a turnaround as international rubber prices continue their strong rebound. Local traders and industry officials...

Plans for solar-powered industrial park illuminated

A joint venture between South Korean and Cambodian investors is planning to establish an industrial park on approximately 100 hectares in Kampong Chhnang province...

Apparel factory closures debated

Questions have been raised about the health of Cambodia’s $6 billion garment sector after local media reported that over 140 garment factories shut down operations...

Kampot pepper pact keeping prices stable

Kampot pepper prices are set to remain stable for another year as part of an agreement between local producers that caps prices through the end of 2017, a...


MOST READ


Back To Top