Siemens Energy Pte Ltd and Tenaga Nasional Bhd (TNB) are exploring the integration of the latter’s large-scale power generation plants with hydrogen.
Siemens Energy group senior vice president and managing director of Asia Pacific, Thorbjörn Fors said the company is completing a feasibility study and the investments needed to present it to TNB soon.
Both parties have signed a memorandum of understanding for the initiative to equip TNB’s existing power-generating plants with hydrogen.
“TNB has several large-scale power generation combined cycles. That’s why we with TNB, we would like to make sure that these 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,” Fors said.
In 2022, TNB revealed its plans 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, with intentions to collaborate with technology partners to provide technology that will help GenCo venture into cleaner sources such as hydrogen.
Fors noted that 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 as part of 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 out near-term plan,” he added.
In June 2024, Deputy Prime Minister Datuk Seri Fadillah Yusof said that Malaysia has established a phase-out plan for existing coal-fired power plants by reducing it to 50% 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 subsidies and tax to create a financial environment where customers take the initiative.
Fors noted the importance of public-private partnerships (PPPs) in decarbonisation efforts throughout ASEAN, Malaysia’s ideal location in the region and that the region’s 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 is a lot of momentum but we will need governmental structural, infrastructural support to drive towards an inflexion point but this will not happen without PPPs,” he added.
