by S BIRRUNTHA / Pic by BERNAMA

TENAGA Nasional Bhd (TNB) through its wholly owned subsidiary, TNB Power Generation Sdn Bhd (TNB Genco), has received a letter of intent from the Energy and Natural Resources Ministry for the development of a 2,100 megawatt (MW) combined cycle power plant in Kapar, Selangor.

In a statement today, the utility giant said the project will be carried out in collaboration with Widad Business Group Sdn Bhd and is scheduled to achieve a commercial operation date by 2031.

TNB said the new plant will use clean technology to support TNB’s accelerated energy transition plan which is driven by the group’s net zero emissions aspiration by 2050. The group’s target is to reduce its coal generation capacity by 50% and carbon emission intensity by 35% in 2035.

TNB president/CEO Datuk Baharin Din said the project has an estimated investment of RM9.5 billion and is projected to deliver an earnings before interest and tax of approximately RM400 million per annum.

“It is part of our ongoing drive to further strengthen TNB’s accelerated Energy Transition plan, in support of a carbon-neutral nation and the National Energy Policy, which was announced by the government recently,” he added.

He said the greenfield project will be constructed on land owned by TNB Genco located to the north of the existing Sultan Salahuddin Abdul Aziz Power Station.

Baharin said as part of TNB’s Net Zero 2050 mission, the company will be phasing out its coal plants and will replace its retired coal plants with more efficient gas-fired power plants.

“We are also looking at embracing new green technologies where new gas-fired power plants will be developed with future hydrogen technology as alternate fuel to gas,” he said.

Meanwhile, TNB Genco MD Datuk Nor Azman Mufti said TNB Genco, as part of its role in supporting TNB’s commitment to environment, social and corporate governance, is looking at promoting green technology such as hydrogen as the alternate fuel in its future plant ups.

He said replacing natural gas with hydrogen fuel fired on a 2,100MW capacity power plant in the future has the potential to avoid 4.7 million tonnes of carbon dioxide equivalent emission per annum equivalent to carbon emitted from one million cars each year.

On another note, he said the project will open more employment and business opportunities which in turn will uplift the socioeconomic and living standards of the surrounding communities in Kapar, resulting in economic prosperity and high quality of life.

Shares of TNB closed 1.22% or 10 sen higher at RM8.33 today, giving it a market capitalisation of RM47.92 billion.