TNB and Petronas to study hydrogen and carbon capture

TNB will venture into energy supply and hydrogen production along the Green Hydrogen value chain.

Tenaga Nasional Berhad (TNB) and PETRONAS to work on joint feasibility studies in the areas of Hydrogen and Carbon Capture to unlock the commercial value of at least RM 10 billion up to 2035.

The decarbonisation efforts would be achieved mainly through a collaborative study to develop a green hydrogen ecosystem and carbon capture and storage (CCS) technology, leveraging both organisations’ technical expertise and resources.

In addition, the two companies will repower the retired combined-cycle gas-fired power plant in Paka, Terengganu (the Sultan Ismail Power Station or SIPS) by using gas with hydrogen-ready technology.

TNB will invest RM6.3 billion in the repowering of SIPS using a high-efficient Combined Cycle Gas Turbine (CCGT) with hydrogen-ready technology for cleaner energy production.

The plant’s repowering will leverage the strengths of both TNB and PETRONAS; and will serve as a unique pioneering project in deploying green technologies that may be utilised in future power plants.

Upon commercial operation of the plant in 2030, the repowered Paka is projected to generate an average of RM250 million per year in Earnings Before Interest & Taxes (EBIT).

The Repowering of Paka, with a capacity of 1,400 megawatts (MW) will avoid 3.2 million tonnes of carbon dioxide equivalent (tCO2e) emission per annum, which is equivalent to the CO2 emitted by approximately 700,000 cars each year.

TNB’s MoU with PETRONAS forms part of TNB’s accelerated Responsible Energy Transition, driven by the Group’s aspiration to be net zero by 2050 and the TNB’s target to reduce its coal capacity by 50% and carbon emission intensity by 35% in 2035.

Paka’s transition to be hydrogen ready is a prime example of TNB’s commitment to a long-term investment to decarbonise its generation ecosystem and create ripple economic effects for better lives.

Dato’ Indera Ir. Baharin Din, TNB President and Chief Executive Officer, said, “This brownfield project will start with the demolition of the existing plant next year and this will take two years. Construction of the project will commence from 2025 and the entire complex is scheduled to be ready in 2030.”

Zohaib Ali

Zohaib is the editor of H2 Bulletin. Please click on the email icon to contact me if you want to talk about a news.
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