Logo of Phnom Penh Post newspaper Phnom Penh Post - Brewery to tap solar power for expanded beverage line

Brewery to tap solar power for expanded beverage line

A Khmer Beverages employee sorts Cambodia beer cans  on an assembly line yesterday at the company’s factory near Phnom Penh.
A Khmer Beverages employee sorts Cambodia beer cans on an assembly line yesterday at the company’s factory near Phnom Penh. Hong Menea

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.”

MOST VIEWED

  • PM responds to Rainsy ticket claims

    Prime Minister Hun Sen on Monday expressed frustration over claims by Sam Rainsy that he had altered Rainsy’s ticket with Thai Airways to prevent him boarding his November 7 flight to Thailand, from where he had claimed he would enter Cambodia. Hun Sen made the

  • Phnom Penh International Airport wins award as passenger traffic soars

    The Phnom Penh International Airport has been awarded Best Asia Pacific Regional Airport 2019 for its sustained high growth in passenger traffic in recent years. The award was presented by the Capa Centre for Aviation (Capa) – a world-leading and trusted organisation that provides market intelligence to

  • PM urges ‘democracies’ to learn from horrors Cambodia faced

    Prime Minister Hun Sen on Tuesday chided countries that he said declared themselves a democracy while supporting a military coup that eventually gave birth to the Khmer Rouge regime. Speaking during the 2nd Asia-Pacific Summit at the Peace Palace, Hun Sen said without naming those

  • Princess Buppha Devi passes away aged 77

    Princess Norodom Buppha Devi, who was famous for her skills and key roles behind the Kingdom’s Royal Ballet, passed away on Monday from unspecified illness at a hospital in the Thai capital Bangkok, according to the official Facebook page of King Norodom Sihamoni. “May

  • PM: Request for release of plotters not due to pressure

    Prime Minister Hun Sen on Saturday said his request to have the supporters of former opposition leader Sam Rainsy and his “coup plot” released on bail was not made under international pressure. Speaking at the groundbreaking ceremony for the construction of 34 roads in Preah Sihanouk

  • Ministry deplores RFA report on EBA

    The Ministry of Foreign Affairs and International Cooperation on Friday deplored as fake news a Radio Free Asia (RFA) report that it had received a copy of the European Commission’s assessment on the human rights situation in Cambodia as part of the Everything But