Malaysia’s Malakoff is investing over $2bn in an additional generator at Tanjung Bin in the southern state of Johor.
Construction of the 1,000MW plant started in August and is due to be completed in April 2016.
The contract was awarded to Malakoff by the Energy Commission in June 2011.
The plant will ramp up Tanjung Bin’s current generating capacity of 3x700MW to a total of 3,100MW.
Malakoff chief executive officer Zainal Abidin Jalil told E&T the new plant is being constructed with cutting-edge supercritical technology including supercritical steam turbine and generator, boiler and plant auxiliaries.
This technology increases the plant’s net efficiency by more than three per cent at rated capacity and is able to utilise 100 per cent sub-bituminous coal.
The plant’s close proximity to the Iskandar Economic Corridor (IEC) will result in lower transmission losses and better utilisation of the grid system.
IEC is a 2,217 sq km region covering the city of Johor Baru and the adjoining towns of Pontian, Senai, Pasir Gudang and the construction of a new administrative capital in the neighbouring town of Nusajaya.
Tanjung Bin’s additional generating capacity is intended to meet the increased power demand in IEC which is expected to surge from 1,479MW in 2010 to 2,254MW by 2020 spurred by the growth of key industries such as port and marine services, warehousing and logistics, engineering and high-tech manufacturing, petrochemical industry and entrepôt facilities.
The project to expand the power plant is expected to have a huge multiplier effect in terms of job and business opportunities in the southern region.
Malakoff, which is the leading independent power producer in Malaysia and the region, will make the generating capacity available to the off taker Tenaga Nasional Berhad under a 25-year power purchase agreement.
Malakoff currently has net generating capacity of 5,020MW from its six coal- and gas-fired power plants in Malaysia.
On the international front, the company has power ventures in Saudi Arabia, Algeria, Kuwait and Bahrain, with plans to move into the fast growing south east Asian markets.