TNB, PETRONAS to explore hydrogen, carbon capture

The companies seek to unlock at least RM10b in commercial value up to 2035.

The Tenaga Nasional Berhad (TNB) and PETRONAS will conduct feasibility studies to explore hydrogen and carbon capture. 

This comes as the companies intend to unlock at least RM10b worth of commercial value up to 2035, TNB President and CEO Dato’ Indera Ir. Baharin Din. 

“This brownfield project will start with the demolition of the existing plant next year and this will take two years,”  Bahrain said. 

“Construction of the project will commence from 2025 and the entire complex is scheduled to be ready in 2030.”

Read more: TNB, PETRONAS to explore green hydrogen development in Malaysia

Under the memorandum of understanding (MoU),TNB and PETRONAS are expected to strengthen their collaboration in decarbonisation efforts to develop a green hydrogen ecosystem, and carbon capture and storage (CCS) technology. 

The MoU also provided that retired combined-cycle gas-fired power plant in Paka, Terenggany will be repowered through gas with hydrogen ready technology. 

Read more: TNB to invest $4.5b annually for energy transition

TNB will be funding the repowering of the plant through a RM6.3b. Its repowering is estimated to generate an average RM250 million annual earnings before interest and taxes. 

“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.”