KUALA LUMPUR: Maharani Energy Gateway Sdn Bhd (MEG) has inked two collaborative framework agreements with China Energy Engineering Corp Ltd’s wholly-owned subsidiary CEIG (M) Sdn Bhd.
The partnership is for the construction of two projects – a combined cycle gas turbine (CCGT) power plant and a green hydrogen and green ammonia plant.
Both projects, worth US$2bil (RM9.47bil), will be constructed in the Maharani Energy Gateway Free Trade Zone in Muar, Johor.
CEIG vice-president of South-East Asia regional headquarters, Fan Yi said the capacity for the CCGT plant will be 1.4 gigawatts.
Meanwhile, the hydrogen plant is expected to produce 3,400 tonnes a year and the ammonia plant will have a capacity of 18,880 tonnes annually.
The green hydrogen plant, which will use renewable energy (RE) sources such as solar and wind to produce hydrogen, would be the largest to date in Malaysia.
“The reason we have chosen both forms of RE is because CCGT is a good solution and very efficient according to the commitment that Malaysia has for its net-zero ambitions,” Fan said at the signing ceremony here yesterday.
According to Fan, hydrogen is suitable for Malaysia’s energy structure as it currently relies heavily on petrochemicals.
She added that the construction of both plants will depend on the financing aspect and negotiations assisted by MEG.
“We will be discussing with other partners but we do expect the tenants in the free zone to be the end users once the plants are ready.
“Financing will be done in phases so these projects are estimated to take years,” Fan said.
Meanwhile, Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said his ministry is very supportive of the projects as it is part of the National Energy Transition Roadmap.
“It is not only important for us to meet our net-zero targets but also it is becoming increasingly vital for us to be able to provide this for industries and investors that have been asking for cleaner and greener forms of energy,” he said.
Tengku Zafrul said the projects and initiatives will be able to spur the economy while increasing growth and investment opportunities.
“The combined cycle gas turbine, green hydrogen and green ammonia facilities at the MEG will certainly complement the surrounding oil and gas, petroleum and petrochemical industries in Johor, while helping to position Malaysia as a RE-focused and sustainable regional energy hub and ecosystem.”
MEG executive chairman Datuk Dr Daing A. Malek Daing A. Rahaman said Malaysia plays a pivotal role in the solar power industry and recent developments in solar photovoltaic systems have led to its phenomenal growth in Malaysia.
“The partnership today is one step forward to ensure Malaysia achieves these goals.
“The fruits of these agreements will not only be environmentally beneficial but will also prove green technology’s potential as a key socio-economic driver for the nation in the future.”
