BTM Resources Bhd has officially cancelled plans to develop its 10MW biomass power plant following the termination of banking facilities secured for the project. The company is also evaluating whether to proceed with a separate 7MW biomass plant, which is currently on hold, reported The Edge Malaysia.
In a filing with Bursa Malaysia on Thursday, the sawmill operator said the Sustainable Energy Development Authority Malaysia (SEDA) had approved its request on May 8 to relinquish the feed-in tariff (FiT) approval certificate for the 10MW project. The relinquishment took effect on April 30.
BTM cited the loss of financing—initially withdrawn in February—and ongoing market uncertainties, particularly fluctuations in raw material prices, as key reasons for shelving the project.
The original FiT approval, granted in July 2020, permitted BTM to build, own, and operate the renewable energy plant, supplying electricity to Tenaga Nasional Bhd (KL:TENAGA) at a fixed rate of RM0.3486 per kilowatt-hour over a 21-year period.
Despite the cancellation, the company noted that the decision would not have a material impact on its operations, as construction on the plant had not yet begun.
BTM still holds a valid FiT certificate for a 7MW biomass power project approved in May 2022. However, the group is reviewing its viability and may consider surrendering the approval if market challenges persist over the next six months.
“As such, the biomass power plant project is currently on hold,” BTM said, adding that it is exploring alternative uses for the project land, though no firm plans have been finalised.
BTM Resources’ share price closed unchanged at four sen on Thursday, giving the company a market valuation of RM50 million.
