Mestron Unit Obtains SEDA Approval To Expand Biogas Power Generation Facility In Kelantan
KUALA LUMPUR, Oct 30 (Bernama) -- Mestron Holdings Bhd has obtained a new feed-in approval (FiA) from the Sustainable Energy Development Authority Malaysia (SEDA Malaysia) to expand its biogas power generation facility in Gua Musang, Kelantan.
The steel pole manufacturer said the approval was granted to its indirect wholly owned subsidiary Liziz Biogas Sdn Bhd.
“The approval enables the group to increase the facility’s approved net electricity export capacity by 18 per cent from 2.00 megawatts (MW) to 2.36MW, while raising its approved installed capacity by 13 per cent from 2.76MW to 3.12MW,” it said in a Bursa Malaysia filing.
Mestron stated that under the new FiA, the facility’s feed-in tariff (FiT) rate will increase from the existing 39.75 sen per kilowatt-hour (kWh) to 45 sen/kWh for the first 10 years, followed by 43 sen/kWh for the subsequent 11 years.
Taking effect from the scheduled FiT commencement date of Aug 17, 2029, the revised tariff establishes a 21-year framework for renewable electricity sales, subject to the applicable approval conditions.
“To support the capacity upgrade, Mestron plans to procure and install an additional 1.5MW gas engine generator to boost the plant’s generation output and operating efficiency.
“Upon completion and full commissioning of the expanded operations, management estimates that the facility has the potential to generate approximately RM7.5 million in total annual revenue, subject to actual generation performance, plant availability and operating conditions,” it said.
Mestron’s Gua Musang biogas plant began supplying renewable electricity to Tenaga Nasional Bhd in March 2023.
The facility treats and captures methane-rich biogas derived from palm oil mill effluent, converting agricultural processing waste into clean electricity for the national grid while reducing greenhouse gas emissions that would otherwise be released through open waste decomposition.
-- BERNAMA