Week 6 BMM4753 RENEWABLE ENERGY RESOURCES
Topic 3.2 Geothermal Energy Conversion Update 2015
Malaysias First Geothermal Power Plant
To be built at Apas Kiri in Sabahs Tawau district, is expected to have the
capability of generating more than 100-MW of electricity, once all its
development phases are completed.
Tawau Green Energy Sdn Bhd (TGE), the projects developer, is building the
first, which is expected to begin operation in 2014 with a generation
capacity of 30-MW.
The project is being support by Mayasias federal government which will
provide a 35 million Ringgit (USD11.1 million) in funding under public-
private partnership agreement signed at the weekend.
The total phase one project investment is estimate at RM419 million
(USD133 million) with the preliminary infrastructure and interconnection
accounting to almost RM120 million (USD38 million).
Last November TGE signed a power purchase agreement with state utility
Sabah Electricity Sdn Bhd, giving at a 21-year concession to provide 30-
MW of electricity to the Sabah grid at a fixed tariff of RM0.21/kWh (7 US
cents).
Week 6 BMM4753 RENEWABLE ENERGY RESOURCES
Topic 3.2 Geothermal Energy Conversion Update 2015
Malaysias First Geothermal Power Plant .contd
The project will also qualify to receive carbon credits under the
Clean Development Mechanism of the United Nations Framework
Convention on Climate Change.
Earlier this month the company entered sold 10 percent of its shares
Vancouver, Canada-based Continental Energy Corporation. CEC is
listed on the OTC Bulletin Board in the United States and has been
actively involved in Indonesias oil and gas industry.
The Apas Kiri geothermal prospect had been identified by Malaysias
Minerals and Geosciences Department as having the potential for
electricity generation through studies commissioned by the
department in the early 1990s and more recently, in 2008-2009. The
survey covered an area of about 50-km, leading the discovery of a
12 square kilometers sub-surface heat water field.
Week 6 BMM4753 RENEWABLE ENERGY RESOURCES
Topic 3.2 Geothermal Energy Conversion Update 2015
New Zealand To Develop Geothermal Energy In Malaysia, 10/3/14
Malaysias geothermal energy industry in Tawau is to be developed in a
partnership with the University of Auckland's world renowned Institute
for Earth Sciences and Engineering.
Dr Andy Shenk, chief executive of Auckland UniServices, inked a
memorandum of understanding with Tawau Green Energy (TGE) in
Auckland early this month.
It covers the establishment and support for a Geothermal Resource
Centre (GRC) being set up by TGE in Tawau and supported by Malaysias
Federal Government and the Sabah State Government.
Dr Shenk says Tawau is an area that will benefit from a sustainable
power source. The universitys Institute was approached by TGE on the
back of its work not only in neighbouring Indonesia, but also many
places around the Ring of Fire in the Pacific.
Week 6 BMM4753 RENEWABLE ENERGY RESOURCES
Topic 3.2 Geothermal Energy Conversion Update 2015
New Zealand To Develop Geothermal Energy In Malaysia, 10/3/14
Ms Zalina Ahmad, director of Tourism Malaysia in New Zealand,
says for many New Zealanders, Tawau is best known as the
jumping off point for scuba diving in the Sipadan Islands an area
made internationally famous by French oceanographer Jacques
Yves Cousteau. Tawau is part of the Malaysian state of Sabah, on
the island of Borneo.
Staff from the University of Auckland will assist the Geothermal
Resource Centre to provide specialist training in all aspects of
geothermal energy including applied geosciences, steamfield
design, power plant technology, power plant engineering and
design, operations and maintenance, environmental compliance.
Week 6 BMM4753 RENEWABLE ENERGY RESOURCES
Topic 3.2 Geothermal Energy Conversion Update 2015
New Zealand To Develop Geothermal Energy In Malaysia, 10/3/14
.cont
TGEs managing director Ramzi Raad says the centre will also run
seminars, short courses and other training programmes for
Malaysian engineers and scientists keen to involve themselves in
this new field of renewable energy. It will also encourage local
and foreign universities to collaborate on joint-research activities
on Malaysias Apas Kiri geothermal field.
TGE is developing Malaysias first geothermal power plant at Apas
Kiri, Tawau, which will deliver 30MW of electricity to the Sabah
State Grid in May 2016. Drilling operations are expected to
commence at the end of April 2014.
Week 6 BMM4753 RENEWABLE ENERGY RESOURCES
Topic 3.2 Geothermal Energy Conversion Update 2015
New Zealand To Develop Geothermal Energy In Malaysia, 10/3/14
.cont
Malaysias Minister of Energy, Green Technology and Water Dr Maximus
Ongkili, who led the delegation to New Zealand, says Malaysia wants to
promote use of renewable energy and reduce its dependency on fossil fuel.
Currently renewable energy accounts for 0.85% of the countrys energy
mix, but it hopes to increase that to 5.5% in the near future.
The Malaysian delegation also visited the Wairakei combined flash and
binary geothermal power plant and the Ngatamariki binary geothermal
power plant, both located near Taupo.
More good news is that the project is expected to offset some 200,000
tonnes of CO emissions annually.
NB: United Nations Framework Convention on Climate Change under its Clean Development Mechanism program and is
enabled to earn certified emission reduction ("CER") credits during its first ten years of operations. Each CER may be sold
and traded on carbon credit exchanges such as BlueNext at a quoted market price (current spot CER price is euro 3.55 each).
When operating at its rated capacity of 30 megawatts, the power plant is expected to reduce CO2 emissions by 282,400
metric tonnes per year and earn the same number of CERs (1 CER = 1 tonne CO2 reduction). Under its agreement with a
third party carbon credit solutions provider, TGE will be entitled to 75% of the CER revenue or about euro 750,000 per year
at current CER spot prices. Take exchange rate at RM4.12 estimated revenue RM3.09 million.
