Tex Cycle Technology (M) Berhad (“Tex Cycle” or the “Group”), an established waste management and recycling solutions provider, proudly announces that its 2 MW Gasification Gas Engine Power Plant, located in Jalan Telok Gong, Kampung Telok Gong, 42000 Pelabuhan Klang, Selangor, has successfully reached a major regulatory milestone, received official confirmation from the Sustainable Energy Development Authority (SEDA) Malaysia regarding its Feed-in Tariff Commencement Date (FiTCD).
This milestone follows the successful completion of the Initial Operation Date (IOD) testing on 28 July 2025, as well as the subsequent Acceptance Test and Performance Assessment (ATPA). SEDA has formally established the Feed-in Tariff Commencement Date (FiTCD) effective from 30 September 2025, granting an official total Feed-in Tariff (FiT) rate of RM0.4266 per kWh.
This approval enables Tex Cycle to commence full commercial operations under the Renewable Energy Power Purchase Agreement (REPPA) with Tenaga Nasional Berhad (TNB).
This pioneering plant represents a major milestone in Tex Cycle’s expansion into the renewable energy sector. Harnessing advanced gasification technology, the facility converts biomass into synthetic gas (syngas), which fuels high-efficiency gas engines to generate electricity.
Unlike traditional incineration, gasification produces significantly lower greenhouse gas (GHG) emissions and aligns with the Group’s “Cradle-to-Cradle” philosophy that views waste as a resource rather than a burden.
Beyond electricity generation, the plant operates as a near-zero-waste system. Valuable byproducts such as biochar (used to improve soil quality and carbon sequestration), wood vinegar (for agricultural pest control and plant growth), and bio-oil/tar (with industrial application potential) are recovered in the process, reinforcing Tex Cycle’s commitment to circular economy principles.
Mr. Lee Junyan, Chief Technical Officer of Tex Cycle said,
“We are incredibly proud of the technological innovation embedded in this plant. By leveraging gasification, we’ve engineered a low-emission, high-efficiency system that turns biomass into multiple streams of value, from syngas to byproducts like biochar and wood vinegar. This launch reinforces our technical capabilities and opens new doors for green industrial applications.”
Tex Cycle’s 2 MW gasification plant marks a significant leap forward in Malaysia’s clean energy infrastructure and reinforces the Group’s position as an innovator in sustainable environmental solutions.
The initiative also supports the Malaysian Government’s target to increase renewable energy’s share in national electricity generation from 2% to 20% by 2030, as outlined in the 12th Malaysia Plan and the Renewable Energy Roadmap (MyRER).
For more information, visit https://www.texcycle.com.my/
