Studies on the viability of hydrogen and carbon capture will be conducted by Tenaga Nasional Berhad (TNB) and PETRONAS. This comes at a time when TNB President and CEO Dato’ Indera Ir. Baharin Din and the firms want to release at least RM10 billion in commercial value by 2035.
According to Bahrain, the dismantling of the current factory will begin next year and last for two years as part of the brownfield project.
The entire facility is expected to be completed in 2030, with construction on the project starting in 2025. According to the memorandum of understanding (MoU), TNB and PETRONAS will work more closely together to advance carbon capture and storage (CCS) technology and other decarbonization initiatives.
In accordance with the MoU, a retired merged gas-fired power station in Paka, Terenggany, will be repowered using gas and technology that is ready for hydrogen. TNB would invest RM6.3 billion in the plant’s repowering. Its repowering is predicted to produce an average yearly income before interest and taxes of RM250 million.
According to the statement, the repowering of Paka, with a capacity of 1,400 MW, will prevent 3.2 million tonnes of carbon dioxide equivalent (tCO2e) pollution every year, which is equivalent to the CO2 released by roughly 700,000 cars each year.