KUCHING: Sarawak Power Generation Sdn Bhd, a wholly-owned subsidiary of Sarawak Energy Bhd, will sell carbon credits from its combined-cycle power plant in Bintulu to Mitsubishi Corporation when it is completed next year.
Both companies signed a clean development mechanism agreement and an emission reduction purchase agreement to this effect here recently.
The agreements were signed by Sarawak Energy group managing director Tan Sri Abdul Aziz Husain and Mitsubishi senior vice president and emissions reduction business unit general manager Ichiro Keida.
Aziz said the combined-cycle power plant, which is currently under construction, could achieve a reduction in carbon dioxide emissions of about 600,000 tonnes a year.
He said this translated into 600,000 carbon credits which would be sold to Mitsubishi for about RM20mil a year over a seven-year period, making it the largest clean-development-mechanism project to be approved in Malaysia.
“The Bintulu project qualifies as a clean development mechanism as it will make use of the waste heat from the existing gas turbines to generate energy.
“Two heat recovery steam generators and other equipment will be installed to recover the waste heat and convert it to electricity,” he said at the signing ceremony.
He added that, as no fossil fuels would be burnt to generate electricity, the project would not contribute to air pollution but would reduce carbon dioxide emissions instead.
The RM365mil plant is expected to be operational in August next year with a capacity of 110MW.