Tex Cycle Technology (M) Berhad (“Tex Cycle” or the “Group”), a well-established company providing waste management and recycling solutions, is excited to announce a significant achievement. Its 2 MW Gasification Gas Engine Power Plant, located in Jalan Telok Gong, Kampung Telok Gong, 42000 Pelabuhan Klang, Selangor, has officially reached an important regulatory milestone. The company has received confirmation from the Sustainable Energy Development Authority (SEDA) Malaysia about its Feed-in Tariff Commencement Date (FiTCD).
This achievement comes after the successful completion of the Initial Operation Date (IOD) testing on 28 July 2025, followed by the Acceptance Test and Performance Assessment (ATPA). SEDA has set the official Feed-in Tariff Commencement Date (FiTCD) to 30 September 2025, with a total Feed-in Tariff (FiT) rate of RM0.4266 per kWh. This approval allows Tex Cycle to begin full commercial operations under the Renewable Energy Power Purchase Agreement (REPPA) with Tenaga Nasional Berhad (TNB).
This innovative plant marks a significant step in Tex Cycle’s growth in the renewable energy sector. Using advanced gasification technology, the facility turns biomass into synthetic gas (syngas), which fuels high-efficiency gas engines to produce electricity. Unlike traditional burning methods, gasification results in much lower greenhouse gas (GHG) emissions and supports the Group’s “Cradle-to-Cradle” approach, which sees waste as a resource instead of a problem.
Beyond electricity generation, the plant functions as a near-zero-waste system, recovering valuable byproducts like biochar, wood vinegar, and bio-oil/tar, thus 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 represents a major advancement in Malaysia’s clean energy infrastructure and strengthens the Group’s role as an innovator in sustainable solutions. This initiative also aids the Malaysian Government in raising renewable energy’s contribution to national electricity generation from 2% to 20% by 2030, as stated in the 12th Malaysia Plan and the Renewable Energy Roadmap (MyRER).