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ETRONAS, TNB signed Mou for explore green hydrogen development in Malaysia



PETRONAS and Tenaga Nasional Berhad (TNB) have signed a Memorandum of Understanding (MoU) to strengthen collaboration in driving innovative solutions towards decarbonisation in support of Malaysia’s aspirations to be a carbon-neutral nation by 2050.


This will be achieved mainly through a collaborative study for the development of green hydrogen ecosystem and carbon capture and storage (CCS) technology leveraging both organisations’ technical expertise and resources.


The MoU was signed by PETRONAS President and Group Chief Executive Officer (CEO), Datuk Tengku Muhammad Taufik and TNB President and CEO, Dato’ Indera Ir Baharin Din, witnessed by PETRONAS Senior Vice President of Project Delivery and Technology, Bacho Pilong and TNB Chief Regulatory and Stakeholder Management Officer, Datuk Wira Roslan Ab Rahman. The ceremony was presided by Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan.


Praising TNB and PETRONAS on the initiative, Datuk Seri Takiyuddin said the collaboration will help fast track the Government’s efforts in its aspiration to reduce greenhouse gas emissions.


“The timing to embark on this effort is also perfect as the Government is scheduled to launch the National Energy Policy 2021-2040 soon that will outline Malaysia’s transition to green energy,” he said.


Pointing to the Prime Minister’s pledge towards zero carbon emissions by 2050 when tabling the 12th Malaysia Plan in September last year, Datuk Seri Takiyuddin said this aspiration requires a close collaboration among various stakeholders especially in the energy sector, a critical component of the country’s economy with multiplier effects on other sectors.


“The Government is confident that the cooperation of these two energy companies will accelerate the reduction of their emission intensity as they decarbonise,” he added.


Both PETRONAS and TNB have pledged their commitment towards Net-Zero Carbon Emissions (NZCE) 2050. The MoU is poised to infuse agility across the value chain to conduct and grow business in ways that contribute positively to society and the environment.


Under the MoU, PETRONAS and TNB will conduct a joint feasibility study on the application of CCS solutions at TNB power generation plants. The parties will also look into developing green hydrogen fuel for power generation and intensifying efforts to co-create a green hydrogen ecosystem to provide cleaner energy solutions for Malaysia and markets overseas.


This initiative will begin with the re-powering of TNB’s retired Sultan Ismail Power Station in Paka, Terengganu using high-efficient Combined Cycle Gas Turbine with hydrogen ready technology by 2029 towards cleaner energy production. Leveraging on the strengths of both TNB and PETRONAS, the Paka power plant serves as a unique pioneering project in deploying green technologies that may be utilised in future power plants.


Both TNB and PETRONAS have significant investments in Terengganu. With the re-powering of TNB’s Paka power plant and PETRONAS’ aspiration to decarbonise its assets in Terengganu, the shift into green technology development ensures sustained economic growth for the state.

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