The way forward
With efforts to strengthen our current operations system as well as in support of the Government’s target and initiative to reduce the intensity of greenhouse gas emissions (GHGs) to 40% of GDP in 2020 plus increase the percentage from 2% to 20% of renewable energy for electricity generation by 2030, the Company has embarked into this Renewable Electrical Energy Plant (REEP) project of generating electricity from decontaminated biomass to the Tenaga Nasional Berhad grid surrounding the Telok Gong, Klang vicinity which is in short supply due to the area’s fast growing expansions.
This is also coherent with the Company’s believe in the “Cradle-to-Cradle” concept, with our pivotal intention to reduce disposal of scheduled waste to secured landfill which leaves behind substantial effects to the global environment. This concept is also brought to light by the Department of Environment (“DOE”) with the way forward being an evolution towards excellence in Integrated Waste Management by a paradigm shift from a Cradle-to-Grave to Cradle-to-Cradle approach. Previously waste was regarded solely as an unwanted by-product, however, at present waste recycling and resource recovery are seen as potential resources.
Objectives of the Renewable Electrical Energy Plant (REEP)
This technology aims to further enhance and complement our existing scheduled waste management system with the following objectives:
Minimise the degradation of the environment
By using our in-house treated waste streams as fuel source replacing Liquefied Petroleum Gas (LPG), we have eliminated the use of new fossil fuel for the process. These waste streams if left untreated will contaminate ground and surface water, the waste will also degrade to form methane which is a potent greenhouse gas.
Zero or low Greenhouse Gas (GHG) emission
It has low greenhouse gas emission and the process stops the creation of methane gas created in the bio-degradation of biomass. Carbon Dioxide (CO2) is created in place of the methane.
Safe for use and promotes healthy and improved environment for all forms of life
The process will neutralise biomass residue and in turn improve the environment for all forms of life.
Conserve the use of energy & natural resources
The project seeks to use decontaminated biomass destined for secured landfill as a fuel source to produce electrical power, hence the project when implemented will conserve on the use of environmentally degradable fossil fuel.
Promote the use of renewable resource
The project will create a viable and sustainable means to dispose of the decontaminated biomass, thus encouraging industries to use more renewable resources.
The technology and project flow
On 2 August 2016, Tex Cycle (P2) Sdn Bhd, a wholly owned subsidiary of Tex Cycle Technology (M) Berhad, had obtained approval from Sustainable Energy Development Authority Malaysia (SEDA) to build and operate a renewable electrical energy power plant with a capacity to supply 2 MW per hour of electricity to Tenaga Nasional Berhad through a renewable energy power purchase agreement (“REPPA”). The REPPA with Tenaga Nasional Berhad was signed on 2 February 2017 at a fixed tariff rate of RM0.4766 per kWh for sixteen (16) years. The renewable electrical energy power plant (“REEP”) is located at Tex Cycle (P2) plant.
The REEP will have an installed capacity of 2.5 MW per hour. Construction of the REEP commenced in January 2017 and the Energy Commission Public License has already been obtained for an operation period of 16 years with the approved commencement date of 28 January 2019. However, the commencement of Feed-in Tariff has been postponed as the Company is now required to update its existing Environment Impact Assessment and including new Terms of Reference (“TOR”). The Company is in the midst of applying to SEDA for a further extension of time for the Initial Operation Date (“IOD”) and Feed-in Tariff Commencement Date (“FiTCD”).
Acceleration into other local Renewable Energy Projects
Tex Cycle Technology (M) Bhd has also entered into a new joint venture (JV) with majority ownership to expand its renewable energy (RE) generation business. its wholly-owned subsidiary, Tex Cycle Sdn Bhd (TCSB), had on July 15 entered into a shareholders’ agreement with Pakar Go Green Sdn Bhd (PGG) and KLPK Niaga Sdn Bhd.
TCSB, PGG and KLPK intend for Pakar B2E Sdn Bhd (PB2E) to be the JV vehicle in Kedah for entering into projects relating to the development of renewable energy power plant, procurement and processing of biomass solid fuel for renewable energy generation, trading and export the by-products obtained from the process.
PB2E has signed the renewable energy power purchase agreement with Tenaga Nasional Bhd for a feed-in-tariff (FiT) concession period of 21 years. This is in relation to electricity generated from 4MW biomass at its renewable energy power plant in Gurun, Kedah having secured the FiT approval from the government, via the Sustainable Energy Development Authority (SEDA). The FiT that was approved by SEDA was at 37.84 sen per kilowatt hour, and is scheduled to commence on May 6, 2023.
Further information on the JV Co can be found on https://pb2e.com.my/
Moving ahead on a renewable energy venture in the UK
Tex Cycle Sdn Bhd has on 20 June 2019, entered into a Joint Venture Agreement (“JV Agreement”) with CULZEAN Generation Limited (“CULZEAN”). Under the JV Agreement, the parties will be shareholders of a new joint venture company known as CULZEAN W2E Limited (“JV Co”) which has been established to organize the supply of sustainable energy generated from non-recyclable waste to business customers. Further information on the JV Co can be found on https://www.communitypower.co.uk/
More updates on our Biomass Gasification REEP Methodology can be found on: