30/01/2024 (Malaysia) - China's Fortune 500 multinational corporation has agreed to invest US$2 billion (approximately RM9.45 billion) in a significant renewable energy (RE) project in Maharani Energy Gateway, located in Muar, Johor, Malaysia. This investment from China Energy Engineering Corp Ltd, through its international subsidiary CEIG (M) Sdn Bhd, will focus on developing Malaysia's largest combined cycle gas turbine (CCGT) power plant, as well as green hydrogen and green ammonia plants, in the Free Trade Zone of Muar.
The investment framework was solidified through two Framework Agreements of Cooperation signed between Maharani Energy Gateway Sdn Bhd (MEG) and CEIG. Malaysian Investment, Trade, and Industry Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz, highlighted the significance of this new investment for attracting more foreign companies to explore opportunities in Malaysia. He emphasized the role of this collaboration in boosting the country's investment environment and economic growth.
Zafrul stated, "MITI will support this commitment, which is part of the National Energy Transition Roadmap (NETR). This initiative is crucial for achieving our net-zero targets and will open up opportunities for investors in Muar's free trade zone. The benefits for the country include more international cooperation in providing the energy types needed by investors, which will further enhance economic growth and investment opportunities."
At the press conference following the signing ceremony, both Datuk Dr. Daing A Malek Daing A Rahaman, Executive Chairman of MEG, and Fan Yi, Vice President of CEIG for the Southeast Asia Regional Headquarters, were present.
Zafrul also mentioned that policies like the New Industrial Master Plan 2030 (NIMP 2030) and NETR have seen many foreign entities collaborating with local participants to foster a greener future for the country. The CCGT, green hydrogen, and green ammonia facilities by MEG and CEIG at Maharani Energy Gateway are expected to complement the oil, gas, petroleum, and petrochemical industries in Johor, positioning Malaysia as a regional energy and eco-hub.
The CCGT plant, which will utilize renewable energy sources such as solar and wind to produce hydrogen, is set to be the largest in Malaysia. According to Daing A Malek, the CCGT power plant will generate electricity using natural gas and hydrogen, which can be exported to the national grid or neighboring countries.
"This joint project aligns with Malaysia's Green Energy Initiative, encompassing various programs and policies to promote the development and utilization of renewable energy sources. It also aligns with Malaysia's plan to increase its renewable energy capacity target from 40% in 2040 to 70% by 2050. The Green Energy Project is essential not only for Malaysia's commitment to reducing carbon emissions but also for ensuring energy security, driving economic growth, and creating job opportunities," he explained.
MEG aims to establish an energy hub and deep-sea port by constructing three artificial islands covering an area of 1,295 square hectares. This project is expected to create 45,000 job opportunities.