Mestron Holdings Bhd announced that its subsidiary, Liziz Biogas Sdn Bhd had received official approval from Malaysia’s Sustainable Energy Development Authority on the effective operation of the plant at Gua Musang.
Set competitively at 39.75 sen/kW, the rate will commence from July 26, 2023 for a period of 21 years. This development marks a significant milestone following Mestron’s strategic move into the renewable energy sector back in 2021.
Mestron’s Managing Director, Mr Por Teong Eng, said: “Our renewable energy segment has has taken another leap forward with the effective date of the FiT took place. We anticipate this change to contribute an additional RM2 million to RM3 million annually to our Group’s bottom line for the next 21 years. Diversifying from our core manufacturing business allows us to generate additional income, solidifying our position in the market.”
Over the next two to three years, the Group aims to expand its plant capacity from current 2.4MW to 3.2MW. The revised rate will translate into net earnings of around RM3 million per annum, suggesting a strong double-digit growth over the next few year.
The Liziz biogas plant is also located in a strategic location next to a palm oil mill, which allows the plant to benefit from a consistent supply of raw materials, POME. This will streamline waste collection from smaller mills, ensuring a steady flow of materials, especially during millers’ low seasons. This also provides a competitive advantage to the Group in terms of
capability to expand its capacity.
