Tex Cycle Technology (M) Bhd has officially received confirmation from the Sustainable Energy Development Authority (SEDA) Malaysia regarding the Feed-in Tariff Commencement Date (FiTCD) for its new renewable energy facility. Located in Pelabuhan Klang, Selangor, the 2MW Gasification Gas Engine Power Plant has been approved to commence full commercial operations. This regulatory milestone allows the company to supply electricity to the national grid under a Renewable Energy Power Purchase Agreement with Tenaga Nasional Bhd, while simultaneously integrating biochar production into its operational workflow.

The central challenge addressed by this project is the dual necessity of managing biomass waste sustainably and increasing the national share of renewable energy. Traditional methods of biomass disposal, such as incineration or landfilling, often result in high greenhouse gas emissions and the loss of potential resources. Concurrently, Malaysia is striving to meet ambitious government targets to escalate the contribution of renewable energy to the national electricity mix from 2 percent to 20 percent by 2030, a goal that requires efficient, scalable alternatives to conventional fossil fuel generation.

To resolve these issues, Tex Cycle utilized advanced gasification technology rather than direct combustion. This system converts biomass into synthesis gas (syngas), which then powers high-efficiency gas engines to generate electricity. Distinct from standard incineration, this process is engineered as a near-zero-waste system. It captures the carbon and chemical value of the feedstock, resulting in the generation of marketable byproducts, including biochar, wood vinegar, and bio-oil. This approach effectively closes the loop on material use, embodying circular economy principles within an industrial energy framework.

The outcomes of this initiative are both financial and environmental. The confirmed FiTCD sets the Feed-in Tariff at 42.7 sen per kWh, providing a stable revenue stream for the energy produced. Environmentally, the plant offers a significant reduction in emissions compared to traditional waste management practices. The continuous production of biochar provides further value, offering a carbon-sequestering material suitable for agricultural and industrial applications.


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