Tenaga Nasional Berhad (TNB) and Petrolian Nasional Berhad (PETRONAS) recently signed an MoU stating they will begin exploring the potential for carbon capture and storage within the gas-fired power plants industry.
This MoU is an excellent collaboration as it benefits both parties and highlights the companies commitment to Malaysia’s National Energy Transition Roadmap (NETR), plus the agreement supports Malaysia’s ambition to reach net zero carbon emissions by 2050. The NETR categorises CCUS as the 6th Energy Transition Lever and identifies a clear path to carbon neutrality through the use of this method.
The Prime Minister of Malaysia, Datuk Seri Anwar Ibrahim; Minister of Economic Affairs, Rafizi Ramli; Minister of Natural Resources, Environment and Climate Change, Nik Nazmi Nik Ahmad; as well as the Chairman of TNB, Dato’ Abdul Razak Abdul Majid, and the Chairman of PETRONAS, Tan Sri Dato’ Seri Mohd Bakke Salleh were all present during the MoU agreement, which was held at the TNB’s Energy Transition Conference in 2023. The President and Chief Executive Officer of TNB, Dato’ Seri Ir. Baharin Din, agreed that the MoU strengthens and emphasises TNB and PETRONAS’s commitment to NETR. As CCS stands out as one of the key energy transition levers outlined in the NETR, focusing an MoU on an agreement between two companies with the experience around CCS that these companies have, is an excellent decision and step in the right direction. This MoU provides both companies with the opportunity to utilise their expertise drive the project forwards quickly through aligning their efforts and abilities.
The President commented, “TNB is fully committed to achieving Net Zero by 2050 and is actively pursuing various initiatives to drive decarbonisation in Malaysia. Among these efforts include the capturing and storing of carbon during power generation at gas-fired power plants. The MoU resonates with TNB’s Environmental, Social and Governance (ESG) agenda signifying our unwavering commitment to environmental sustainability through the exploration of CCS technology and aligning with Malaysia’s NETR.”
President & Group Chief Executive Officer of PETRONAS, Tan Sri Tengku Muhammad Taufik, drew attention to just how much work will need to go into this complex energy transition, as it is a systematic challenge which will require work, dedication and cooperation along with a variety of sectors in order to achieve the target for carbon neutrality. Taufik commented, “The MoU bears testimony to the shared conviction of both PETRONAS and TNB to deliver a pathway to responsibly provide energy security while supporting the low carbon aspirations set forth in the NETR. With the combined experience and technical capabilities as owners of energy infrastructures, PETRONAS looks forward to accelerating the development and deployment of CCS technology as part of a decarbonised energy system. Together, we can tap the full potential of technologies at our disposal focused on the immediate need to reduce emissions. On our part, PETRONAS remains resolute to unlocking the solutions that will move the needle towards a more sustainable future – aligned to our net zero by 2050 target.”
This MoU brings together a very important collaboration between TNB and PETRONAS, who will focus on the implementation of CCS technology. This collaboration is so important as it will enable gas-fired power plants to stay operational which will be essential to Malaysia’s transition to becoming a low-carbon economy. The plants will be integral because the natural gas will offer a reliable and affordable transitional base load power source, which will later go on to allow a greater integration or intermittent renewable energy sources. Altogether the efforts within and around this collaboration will aid the nation’s efforts to decarbonise in the most efficient way possible.