KUALA LUMPUR: Tenaga Nasional Bhd (TNB) and Petroliam Nasional Bhd (Petronas) have signed a memorandum of understanding (MoU) to strengthen collaboration in driving innovative solutions towards decarbonisation.
This was done in line with Malaysia's aspirations to be a carbon-neutral nation by 2050.
In a joint statement today, both parties said this would be achieved mainly through a collaborative study to develop a green hydrogen ecosystem and carbon capture and storage (CCS) technology leveraging both organisations' technical expertise and resources.
The MoU was signed by TNB president and chief executive officer (CEO) Datuk Indera Ir Baharin Din and Petronas president and group CEO Datuk Tengku Muhammad Taufik.
The energy and natural resources minister Datuk Seri Takiyuddin Hassan presided over the ceremony.
Takiyudin said the collaboration would 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, which will outline Malaysia's transition to green energy," he said.
Takiyuddin said this aspiration requires 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 said.
This initiative will begin with re-powering 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 is 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.