BUSINESS

SIEMENS ENERGY GROUP EXPLORES HYDROGEN TECH INTEGRATION IN TNB POWER GENERATION PLANTS

11/11/2024 04:33 PM

By Siti Radziah Hamzah

KUALA LUMPUR, Nov 11 (Bernama) -- Siemens Energy Pte Ltd and Tenaga Nasional Bhd (TNB) are exploring the integration of the national utility’s large-scale power generation plants with hydrogen.

Siemens Energy group senior vice president/managing director of Asia Pacific Thorbjörn Fors said the company is completing a feasibility study and will present it to TNB in the ”next couple of months" and the investment needed.

Both parties have signed a memorandum of understanding for the initiative to equip TNB's existing power-generating plants with hydrogen, he said.

"TNB has several large-scale power generation combined cycles. That's why we would like, together with TNB, to make sure that these large-scale power plants can use hydrogen in the future.

"We are looking at where TNB has existing assets. The discussion with TNB is that we will start with one, but will continue with the others and build up the infrastructure around it," he told Bernama in an interview recently. 

TNB had planned in 2022 to retire selected coal plants earlier than the power purchase agreements' expiry to accelerate its sustainability goals to reach net-zero emissions by 2050.

It also foresees coal retirement plans to raise the enterprise value and transition TNB Power Generation Sdn Bhd’s (GenCo) portfolio. It also intends to collaborate with technology partners to provide technology that will help GenCo venture into cleaner sources, such as hydrogen.

Fors said the collaboration aims to help TNB to decarbonise its facilities by moving away from fossil fuels to greener fuels.  

"TNB is investing to ensure that its power plants can operate on green fuels. This is a step-by-step move from fossil to greener fuels. That is in their investment plan. 

"On our side are technology investments. It is our role to invest in research and development to make sure that these power plants can operate on hydrogen," he said, adding that Siemens Energy is looking at the possibility of expanding into Sarawak with its abundant hydropower supply.

"We will probably use more hydropower as the source, and hydrogen in our gas turbines or export the hydrogen to other countries. It is our near-term plan," he added.  

Malaysia is committed to net zero emissions by 2050. Deputy Prime Minister Datuk Seri Fadillah Yusof said in June 2024 that Malaysia has established a phase-out plan for existing coal-fired power plants by reducing it to 50 per cent by 2035 and completely retiring the plants by 2044.

Fors said a significant portion of Malaysia’s power generation was from either coal or gas and it has to explore ways to generate power more sustainably.

"We at Siemens Energy have stepped out of the coal business. We do not believe in the future of coal; we believe gas is part of the transition in the future," he said.

The company and its partners have been advocating a balance between subsidy and tax to create a financial environment where customers take the initiative.

Fors noted the importance of public-private partnerships in decarbonisation efforts throughout ASEAN, Malaysia’s ideal location in the region and that the ASEAN power grid discussion is gaining momentum.

“We can see more (resources) transported down to Malaysia and Singapore from Laos and Cambodia. We also see Peninsular Malaysia’s solar activities and Sarawak’s hydro discussion is very promising. 

"There's a lot of momentum there but we will need governmental structural, infrastructural support to drive towards an inflexion point but this will not happen without public-private partnerships,” he added. 

-- BERNAMA

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