MESTRON Holdings Bhd, an established Malaysian steel pole manufacturer with an expanding renewable energy division, has secured a new Feed-in Approval (FiA) from the Sustainable Energy Development Authority Malaysia (SEDA Malaysia) to expand its biogas power generation facility in Gua Musang, Kelantan.
The approval through its indirect wholly owned subsidiary Liziz Biogas Sdn Bhd enables the group to increase the facility’s approved net electricity export capacity by 18% from 2.00 megawatts (MW) to 2.36MW while raising its approved installed capacity by 13% from 2.76MW to 3.12MW.
Under the new FiA, the facility’s Feed-in Tariff (FiT) rate will increase from the existing 39.75 sen/kilowatt-hour (kWh) to 45 sen/kWh for the first 10 years followed by 43 sen/kWh for the subsequent 11 years.
Taking effect from the scheduled FiT commencement date of Aug 17, 2029, the revised tariff establishes a 21-year framework for renewable electricity sales subject to the applicable approval conditions.
Tapping renewable energy
To support the capacity upgrade, Mestron plans to procure and install an additional 1.5MW gas engine generator to boost the plant’s generation output and operating efficiency.
Upon completion and full commissioning of the expanded operations, Mestron’s management estimates that the facility has the potential to generate approximately RM7.5 mil in total annual revenue subject to actual generation performance, plant availability and operating conditions.
“The new FiA marks an important step forward in Mestron’s renewable energy expansion,” commented the group’s managing director Por Teong Eng.
“With higher approved electricity export capacity and an enhanced tariff structure, we’re strengthening the commercial foundation of our biogas operations and creating greater visibility for long-term revenue generation.”
As Mestron continues to grow beyond our established steel pole manufacturing business, renewable energy represents an important avenue for the group’s diversification, according to Por.
“Our focus is on developing commercially viable energy assets that can contribute more consistently to the group’s earnings and create sustainable long-term value for our shareholders,” he added.
Explore solar, biogas opportunities
Mestron’s Gua Musang biogas plant began supplying renewable electricity to Tenaga Nasional Bhd in March 2023.
The facility treats and captures methane-rich biogas derived from palm oil mill effluent (POME) by converting agricultural processing waste into clean electricity for the national grid while reducing greenhouse gas emissions that would otherwise be released through open waste decomposition.
Unlike solar generation which is limited to daylight hours, biogas plants can generate continuous power around the clock, subject to feedstock availability and plant scheduling.
Expanding the Gua Musang plant’s export capacity directly supports Malaysia’s goal of building a balanced, reliable renewable energy mix under the National Energy Transition Roadmap (NETR).
We believe the transition towards cleaner energy should deliver both environmental and economic benefits,” envisages Por.
“Our biogas operations demonstrate how agricultural waste can be transformed into productive renewable energy while creating commercial value.
This expansion reflects our commitment to growing our renewable energy portfolio in a disciplined manner.
Moving forward, we’ll continue exploring opportunities in solar and biogas energy that complement our existing businesses and support Malaysia’s long-term energy transition.
Mestron remains focused on growing its core steel pole manufacturing business alongside its expanding portfolio of recurring-income renewable energy assets, maintaining a disciplined approach to capital allocation and operational execution.
At 4.52pm, Mestron was unchanged at 11.5 sen with 1.04 million shares traded, thus valuing the company at RM115 mil. – Oct 30, 2026
