Mestron secures approval for larger biogas plant capacity and higher tariffs
The Gua Musang plant could generate RM7.5 million in annual revenue after expansion and full commissioning, the company said.
Mestron Holdings Bhd has received regulatory clearance to lift approved electricity exports from its biogas facility in Gua Musang, Kelantan by 18%. The company said the new feed-in approval also provides for higher tariffs, with commencement scheduled for Aug 17, 2029.
The Sustainable Energy Development Authority Malaysia issued the approval through Liziz Biogas Sdn Bhd, Mestron’s indirectly held, wholly owned subsidiary. It permits net electricity exports of 2.36 megawatts (MW), against 2MW previously, and installed capacity of 3.12MW rather than 2.76MW.
For the initial 10 years, the revised tariff is 45 sen per kilowatt-hour (kWh), compared with the current 39.75 sen. The following 11 years carry a rate of 43 sen per kWh. The 21-year arrangement remains subject to conditions attached to the approval.
Mestron intends to buy and install another gas engine generator rated at 1.5MW. It said the enlarged plant could deliver RM7.5 million in annual revenue after completion and full commissioning, although actual revenue would depend on how much electricity it generates, its availability and operating conditions.
Managing director Por Teong Eng said Mestron would pursue renewable energy projects while continuing its steel pole manufacturing operations. The Gua Musang plant has supplied Tenaga Nasional Bhd since March 2023, using methane-rich biogas recovered from palm oil mill effluent to produce electricity.
