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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 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 companies said in a joint statement.

Under the MoU, TNB and PETRONAS 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, it said.

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“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,” Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan said.

He said Malaysia’s pledge towards zero emissions by 2050 required 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 TNB and PETRONAS have pledged their commitment towards Net-Zero Carbon Emissions (NZCE) 2050.

The companies said 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.