Tex Cycle's renewable energy plant JV to provide 20% in net profit from 2021


KUALA LUMPUR: Earnings from scheduled waste recycling company TEX CYCLE TECHNOLOGY (M) BHD’s joint venture with UK’s Culzean Generation Ltd is likely to contribute an estimated 20% in net profit to Tex Cycle beginning 2021.

Tex Cycle and Culzean had recently formed a 50:50 joint venture company Culzean W2E Ltd to build and manage renewable electrical energy plant (REEP) projects in the UK.

The first plant will be a 2MW REEP in Ellesmere Port, Cheshire, which is expected to commence operations by end-2020.

Apart from the 2MW electricity production, the plant will also process 30,000 tonnes of refuse derived fuel (RDF) per annum.

Speaking at a press conference on Wednesday, Tex Cycle CEO Gary Dass said the group aims to prolong landfill life in the UK by offering its expertise in biomass gasification to generate power from waste.

“The joint venture seeks to also provide eco-friendly energy at a competitive price point without upsetting the ecosystem.

“The electricity and heat produced is used directly by the waste management company, while the excess energy will be exported to the grid.

“The rationale of working in a partnership with UK waste management companies is to secure the supply of adequate feedstock to sustain this business model,” he said.

Following the completion of the first REEP in Ellesmere Port, JV Culzean W2E will develop another two 2MW REEPs in Wrexham and Burnley.

Each plant will require a capital expenditure of an estimated £5mil (RM25.8mil), to be funded by UK financial houses and secured by Culzean W2E.

Tex Cycle is primarily involved in the recycling of industrial waste which produces fuel pellets as a by-product, used as renewable energy fuel.
   

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