KUALA LUMPUR: Mestron Holdings Bhd expects its Gua Musang biogas plant in Kelantan to generate about RM7.5 million in annual revenue following an approved capacity expansion and higher feed-in tariff (FiT) rates.
The company said its indirect wholly-owned unit Liziz Biogas Sdn Bhd, had secured a new Feed-in Approval from the Sustainable Energy Development Authority (SEDA) to increase the plant’s approved net electricity export capacity by 18 per cent to 2.36 megawatts (MW), from 2MW previously.
Its approved installed capacity will also increase by 13 per cent to 3.12MW from 2.76MW.
Under the approval, the plant will receive an enhanced FiT rate of 45 sen per kilowatt-hour (kWh) for the first 10 years, followed by 43 sen per kWh for the subsequent 11 years, compared with its existing rate of 39.75 sen per kWh.
The revised tariff arrangement will take effect from Aug 17, 2029, providing a 21-year framework for renewable electricity sales, subject to the approval conditions.
To support the expansion, Mestron plans to install an additional 1.5MW gas engine generator to increase electricity generation capacity and improve operating efficiency.
Managing director Por Teong Eng said the approval strengthened the commercial foundation of the group’s biogas operations and provided greater visibility over its long-term revenue generation.
“This expansion reflects our commitment to growing our renewable energy portfolio in a disciplined manner.”
The Gua Musang plant began supplying renewable electricity to Tenaga Nasional Bhd in March 2023.
It converts methane-rich biogas captured from palm oil mill effluent into electricity for the national grid, turning agricultural waste into renewable energy while reducing greenhouse gas emissions.
Mestron said the expansion would support Malaysia’s National Energy Transition Roadmap by contributing to a more diversified and reliable renewable energy mix.