15-05-2025
BTM Relinquishes Its Feed-in Tariff Approval After Reassessing Viability
BTM Resources Berhad announced that its wholly-owned subsidiary, BTM Biomass Products Sdn Bhd has relinquished its Feed-in Tariff (FiT) approval granted by the Sustainable Energy Development Authority Malaysia for a 10 Mega Watt per hour biomass power plant project.
SEDA's agreement to the relinquishment was formalised in a letter dated May 7, 2025, and the relinquishment took effect on April 30, 2025. The initial FiT approval was granted to BTMBP on July 1, 2020, to finance, design, supply, build, own, operate, and maintain the renewable electrical energy power plant to supply electricity to Tenaga Nasional Berhad.
BTM stated that the decision to relinquish the FiT approval came after it reassessed the project's viability due to current market uncertainties, including raw materials price volatility, and the difficulty in securing favorable financing following the cancellation of banking facilities.
The company believes that the relinquishment will not have a material impact on its operations, as construction of the biomass power plant had not yet commenced.
However, BTM Resources clarified that the group still holds another Feed-in Approval dated May 31, 2022, granted to BTM Land Sdn Bhd, for a 7 Mega Watt per hour renewable electrical energy power plant. The company is currently reassessing the potential utilization of this second FiT approval and may consider relinquishing it as well if market conditions remain unfavorable.
BTM Resources also announced that it is undertaking an internal assessment of the project land in Kemaman, Terengganu, initially designated for the biomass power plant, to explore alternative business ventures for long-term growth. The company is evaluating a potential new business, with further details to be announced as agreements are finalized. Related
