Renewable Energy plants being set up in Muar

by | Feb 9, 2024 | Business, LOCAL | 0 comments

Maharani Energy Gateway Sdn Bhd (MEG) has signed two collaborative framework agreements with China Energy Engineering Corp Ltd’s wholly owned subsidiary CEIG (M) Sdn Bhd for the construction of two projects in Muar, Johor.

The two projects to be undertaken by the partnership is a combined cycle gas turbine (CCGT) power plant and a green hydrogen and green ammonia plant in the Maharani Energy Gateway Free Trade Zone in Muar, Johor.

The capacity for the CCGT plant will be 1.4 gigawatts and both projects are estimated to be worth RM9.47 billion. The hydrogen plant is expected to produce 3,400 tonnes a year while the ammonia plant will output 18,880 tonnes annually.

The green hydrogen plant will use Renewable Energy (RE) sources such as solar and wind to produce hydrogen and is the largest so far in Malaysia. Hydrogen is suitable for the country’s energy structure and its net zero ambitions.

Currently, Malaysia relies heavily on petrochemicals and this is the reason why the partnership has chosen solar and wind to produce hydrogen and CCGT is a proven solution to the country’s net zero target.

The construction of both plants will depend on the financing by MEG and they will be discussing with other partners and expect the tenants in the free zone to be the end users once the plants are fully commissioned.