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 clean development mechanism (CDM) and emission reduction purchase agreements to this effect here on Monday.
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, would be able to achieve a reduction in carbon dioxide emissions of about 600,000 tonnes a year.
He said this translated into 600,000 carbon credits which will be sold to Mitsubishi for about RM20mil a year over a seven-year period, making it the largest CDM project to be approved in Malaysia so far.
“The Bintulu project qualifies for CDM as it will make use of the waste heat from the existing gas turbines to generate energy,” he said at the signing ceremony.
“Two heat recovery steam generators and other equipment will be installed to recover the waste heat and convert it to electricity.”
He claimed that since no fossil fuels would be burned 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.