Coal is the biggest single source of energy for electricity production globally. Considering its abundant reserves and competitive prices, coal is likely to maintain its market espite the growing concern on CO2 emissions. Our strategy is simple. We will move towards balancing our energy-mix, which will mean shifting our focus towards renewable energy in the mid- to long-term horizon. Meanwhile, we are committed to deploy advanced and clean technologies, which help reduce the emissions significantly. For instance, most recently, we installed the highly efficient ultra-super critical boiler technology at TBEPP. As a result, TBEPP is already in compliance with the new CAR2014 regulations.
As far as emissions management is concerned, our facilities report real-time emissions data from the plant to the respective DOE database for online monitoring by the regulator. To ensure compliance with emission limits, our plants employ a stringent emissions-control equipment maintenance schedule and ensure optimal operational efficiencies. All greenhouse gas (“GHG”) and non-GHG emissions produced by our local generating facilities are directly related to fuel property and combustion process. Emissions produced by our local generating facilities are as illustrated in the chart below:
Type of power station Non-GHG GHG
Coal Fired NOx, SOx,
Gas Turbines (Combined NOx CO2
and Open Cycle)
GHG production is reduced by optimising the units’ generating
We are currently conducting an initial study on our carbon emissions, which will provide us with a baseline data for 2018 sustainability reporting, as part of our commitment towards better management of the carbon footprint.
WE TAKE VARIOUS STEPS TO REDUCE THE IMPACT OF NON-GHG EMISSIONS FROM OUR PLANTS:
We equip our facilities with:
• Filtration equipment to reduce Particulate Matter (“PM”) emissions – an electrostatic precipitator and fabric filter are installed at TBPP and TBEPP respectively;
• Flue Gas Desulphurisation (“FGD”) to reduce Sulfur Oxide (“SOx”) emissions; and
• Stage combustion to reduce Nitrous Oxide (“NOx”) emissions;
• GHG production is minimised by optimising the units’ generating efficiency. We minimise the emissions from coal properties by:
• Selection of coal governed by the Coal Supply and Transportation Agreement (“CSTA”), which is a stringent process and testing to ensure the coal is suitable for the boilers and complies with the emission requirements. We are committed to partner with the industry to pioneer sustainable solutions:
• Malakoff is also one of the participating company together with TNB Research (“TNBR”) to develop the GHG emission factor for electricity sector in Malaysia.
• This initiative will help the country meet its commitment as a signatory party to the United Nations Framework Convention on Climate Change (“UNFCCC”). We are exploring diversification opportunities and strategies:
• By the year 2020, we hope to improve our energymix up to 300 MW of generation capacity from RE portfolio.
Our plants use sea water for process cooling purposes and raw water for general administrative and process requirements. Water used for processes is mainly to replenish water and steam loss to the environment during the operation. We obtain our raw water supplies from respective state water supply companies i.e., Perbadanan Pembekalan Air Pulau Pinang ("PBAPP"), Syarikat Air Johor (“SAJ”) and Lembaga Air Perak (“LAP”).
The following table shows the total raw water consumption according to plant, as recorded in the monthly water bill as metered by the respective state water supply companies:
At our TBPP plant, the management of ash pond water has reduced raw water consumption by 20% in raw water costs per annum, while ensuring environmental compliance (e.g., ash pond water level). In addition, the TBPP plant also has a rainwater harvesting system, which is used for general cleaning purposes around the plant area.
We recognise the risks from coal ash disposal from our coal-fired power plants and therefore, we have a coal ash disposal procedures, helping us to manage our ground, water or air contamination. In 2017, both TBPP and TBEPP coal-fired plant with the combined generation capacity of 3,100 MW produced about 42,000 metric tonnes of Fly Ash and 8,000 metric tonnes of Bottom Ash every month.
All Fly Ash generated was sold to cement and concrete producers to produce pulverised fuel cement and concrete. Whereas, Bottom Ash is stored in the Ash Pond located inside the plant complex and this is being regularly assessed on its condition and safety aspects. During the year, our process improvement initiatives and clean technology deployment resulted in cost savings of approximately RM642,000 by way of combustion optimisation.
In addition, the internal waste (domestic waste) and internally generated scheduled waste such as used lube oil, distillate and contaminated solid waste are collected by appointed domestic contractors and sent for either landfill or incineration for disposal.
In 2017, TBEPP in collaboration with DOE Johor took the initiative to collect all electronic waste (e-waste) such as unused batteries and mobile phones from the project and sent them for proper disposal.
ENVIRONMENTAL MANAGEMENT PLAN (“EMP”)
We have implemented EMP at all our operating sites to continuously monitor and assess the environmental impact of our plant operations. In 2017, sampling and analysis of the environmental-related parameters were conducted by an external laboratory with DOE accreditation. The monitoring parameters included emissions, effluent, marine water, ground water, river water, and biological parameters (for example, mangroves, fishes, birds, and turtles).
In 2017, there were no record of significant spills on any of our local power plants which would harm the environment in the areas that we operate. We have also embraced the Guided Self-Regulation (“GSR”) in our daily operations. GSR was introduced by DOE in 2016 to develop an industrial society with environmental excellence. Based on the
environmental mainstreaming tools recommended, we have already deployed safety and environmental monitoring systems. With GSR, we are better equipped and more competent to manage our environmental impacts going forward.
SUSTAINABILITY FRAMEWORK: WAY FORWARD FOR THE COMPANY
We are in the early stage of mapping our sustainability aspirations with business priorities. However, our Board of Directors as well as the senior management are committed to make real-time progress as far as embedding sustainability in our day-to-day operations is concerned. We understand that it will require a behavioural change at organisational level; a strategic shift at business level from shareholders’ profitability to stakeholders’welfare.
The ESG risks to our business will be more pronounced as we grow, and we will continue to mitigate such risks by applying principles of good governance, sound management policies and sustainable principles for investments and in operations. On the economic front, our aspiration is to improve our energy mix towards supporting the aspiration of the government to significantly reduce emissions and move towards clean energy alternatives. We will also optimise cost structures, improve our operational efficiencies through innovative ideas and technology, and help enhance the economic benefits to both our business and the people in our value chain.
Our social impact is inherent in our business proposition, which is to provide power and water solutions, which is a catalyst for a sustainable industry, that in turn contributes to socioeconomic development of people. Besides, we continuously support the development of our people through equitable policies, learning and development opportunities and partnerships for community welfare and well-being.
Our aspiration for 2018 is to devise a Sustainability Framework for Malakoff, with specific programmes and targets to manage ESG risks and opportunities for positive economic, social and environmental impact.