Abstracts of the interview with Tenaga Nasional Berhad chairman Tan Sri Leo Moggie on the proposed 300MW coal fired power plant at Silam in Lahad Datu District in the east of Sabah where people are opposed to it because of coal toxin pollutants that could affect both health and the environment.
He spoke with journalists after attending a Hari Raya Open House hosted by Tenaga subsidiary Sabah Electricity Sdn Bhd (SESB). Present were Tenaga president and CEO Datuk Che Khalib Mohamad Noh and the SESB managing director Safian Abu Talib.
On Why Tenaga Nasional is using coal technology for its proposed power plant near Lahad Datu.
Tan Sri Leo Moggie: Sabah Electricity Sdn Bhd decided to use coal fuel. In this country, we have various possible sources of fuel. At the same time, it is always prudent to diversify our sources (power generation) in planning for security in supply.
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TNB chairman Datuk Leo Moggie |
Some of it can be used in a limited scale and in specific isolated areas. In terms of providing the overall source, the technology is still not proven yet.
Hydropower is a potential. (But) if you develop hydropower, it also raises questions on the environment and inundation of areas.
Coal supply compared to oil is more dependable, so in future coal will play an important part in our power generation diversification.
In the peninsula, we are already using a number of coal-based power plants. Coal, gas and hydropower are the sources of diversification and it a practical policy.
In the east coast of Sabah, gas is not available. Hydropower also tiada (not available). Biomass is still a very marginal way of power supply. So coal is the most practical fuel source and that’s why we decided on it. As I said that it not just us who is using coal but the world is using it. On why the proposed site is in an eco-sensitive area that could possibly affect environment stretching from Darvel Bay to pristine Danum Valley.
SESB looked at a number of potential sites and identified this site (a portion of state-owned Yayasan Sabah land where the abandoned Pacific Hardwood complex stood sandwiched by Darvel Bay and Silam Hill) as the most logical in terms of its centralised position for a power plant. So it is a logical place to build a power plant near to the coast.
There is not that much option.
Coal fired technology have been developed to be clean, good and used well enough worldwide. And the environmental impact is marginal. Obviously you have to make sure the equipment and plant you use fulfilled all the necessary environmental impact requirements.
We will make sure this will be done in Lahad Datu. When you look at coal fired power being developed worldwide, the technology utilised will demonstrate to you that the impact on the environment is not at an unacceptable level. Every development project will have some environmental impact but it is marginal and acceptable.
That is why we feel this particular location is appropriate. Will it affect the surrounding (Danum Valley and Maliau Basin) national parks? I don’t think it will principally because once the requirements of EIA are met, whatever damage and impact will be minimised.
We in the country are experienced in developing coal fire power. It is not something new to us. We have one in Klang which is a very heavily-populated area since the 1980s. It is functioning well although we are using a lot of coal in that plant as we have made sure the environmental impact technology is incorporated in its design.
We have another one in populated Lumut for four years now. The Janamanjung plant is just across Pangkor Laut which is still rated as one of the top holiday resorts worldwide. There is a five star hotel in Pangkor Laut. No problem at all.
In Johor, phase one of the coal power plant at Tanjung Bin with 700MW capacity is already in operation and will produce 1,400MW by next year. We will be constructing another IPP coal fuel plant at Port Dickson (Negri Sembilan) next year. We are also planning another coal plant in Kuching (Sarawak) similar to the one in Lahad Datu.
We don’t see any real negative impact on the environment in areas where coal power plants are operating It is important for us to realise that SSEB is equally conscious to make sure that environmental impact studies are properly conducted and put in place.
Datuk Khalib has reminded me to say that when people do power planning it is important (to look) at that location of the plant to the centre of usage of power so that the transmission is not too long.
We have power plants in the west coast and we have diesel set power plants in the east coast of Sabah. We are building the east west grid that will connect the east and west coast (of Sabah). But at the same time, we think it is prudent power utility to site a sizeable plant to handle a load requirement of a particular geographical region. The transfer of power from east to west and west to east grid will be continued. But we will not be relying on one particular source of power supply. In a break down at any particular source, at least the impact will be reduced. So when we look at the east coast of Sabah, Lahad Datu is a very logical place for the plant.
On whether Tenaga will be looking at other sites in view of the environmental factor and opposition to the power plant near Lahad Datu.
We don’t see any other alternative sites for the immediate use. We have been looking at the hydro potential in Sabah and we don’t see it in the time frame. Secondly we hope that the press will explain to the consumers and the public the actual position. The press will have an important role to make the public understand. We need you to explain to the public and the SESB management will make sure the public understand it. We are equally concern over environment and health issues.
Which are the companies bidding for the 300MW coal fired power plant in Silam.
We will make it known at the right time as professional evaluation is being done. SESB has appointed external consultants, one for technical and one for financial. The decision (on the company chosen for the project estimated to cost between RM1.3bil to RM1.6bil) will be very much guided by their evaluation.
On whether coal is cheaper than diesel or gas.
Not necessarily. If there is gas (in the east coast of Sabah), we will use it.
On how will Tenaga monitor the environmental impact of the proposed plant as in Sabah there many environmental problems including oil palm companies discharging pollutants but getting away with it?
Even if it is an IPP, the investor is subjected to quality control, which is monitored by the Energy Commission of Malaysia and DOE as well Tenaga and SESB. It is all a matter of enforcement by our authorities. We have modern technology for it.
On whether the coal for the Sabah’s first coal fuel plant will be sourced from Tenaga’s coal mine in Kalimantan Indonesia?
Not necessary from Tenaga’s coal mine but it could be from other mines in Kalimantan. Certainly not from the Tenaga coal mine.
On the fears of environmentalists that with coal power plant in Silam, Tenaga might ask Sabah to allow mining of coal under Maliau Basin known internationally as the Lost World?
The environmentalist always think of everything. Don’t worry we will take care of that. I don’t think we are in the business of coal mining. We are in the business of power supply industry.
4 comments:
Just go through the interview in ur blog..
honestly speaking and from my experience, there will not much environmental impact for this power plant project. I believe the environmentalist is over doing it to get attention or some political agenda.
The most environmental impact that could be seen is during the construction stage which only took 2-3 years. During operation stage, u will not believe it when u see the emission, it's as clean as natural gas plant emission.
jac_6757@yahoo.com
Certainly a coal-fired plant has more environmental consequences that need to be dealt with as compared to natural gas. This is the natural part of the chemical reactions that takes place within the process.
Off course there are scrubbers and filters to remove if not all but the majority of the contaminants. But these days, when people talk about environmental impact one thing that comes into question the carbon cycle. Yes, emitting CO2 is not huge deal if viewed 20 years ago. But with global climate on the rise this greenhouse gas needs to be sustained in order to prevent build-up of CO2 in the air.
I guess CO2 emission standards are not strictly implemented in Malaysia as of yet.
And as for coal mining, even whether its strip mining or long-wall mining that we are talking about, the environmental risk is still present.
As for strip-mining the degree of ground-dater contamination due to the act of mining has to be contained. And for long-wall, subsidence is a big issue. It will not hit us now, but 30 years down the road we expect to see tactonic shifts that impacts local environment.
What a good comments on this issue. FYI, I am working in a one of the reputable IPP in China and involved directly in the development of more than 5 power plant in the various countries and with various kind of power plant includes (Renewable Energy). In Malaysia itself, there are few power plant operated using the coal as a main fuel which are more bigger than the above projects commented. I agreed that our environmentalist is over speculate this issue.
Every IPP in Malaysia or even in other countries had to prepare and implementing the Details Environmental Impact Assesment (DEIA). DEIA has to be implemented in accordance with Section 3A of the of the Environmental Quality Act, 1974, covering all aspects regarding pollutions and compliance with all current environmental quality regulations and guidelines imposed by the Malaysian Department of Environment (DOE).
Further, the tender also require bidders to propose power generating plant designed according to the latest and proven “Clean Coal Technology” without any negative impact on environmental and to local community.
'Advance Clean Coal Technology’ will be used to reduce the emission of carbon monoxide and comply with the international standard in accordance with the Environmental Impact Assessment “EIA”.
Application of Proven Clean Coal Technology which cover the state of the art Boiler, Dust removal capability of more than 99.5% using Electrostatic Precipitators (ESP).Well-type sea water scrubber Flue Gas Desulphurization (FGD) technology to limit Nox and Low Nox combustion technology to prevent excessive Nox excessive.
The gases emission of coal-fired power plant if using the advanced clean coal technology are similar with the emission produce by the Biomass Power Plant. The different are actually the Advanced Clean Coal Technology are very expensive then the Biomass Type of Power Plant which are should be complementing with CER's incentives under CDM.
Therefore, my opinion, this coal-fired power plant doesn't give hazrdous to the environment and local community as well but giving their benefits to the rural area like Lahad Datu.
Please think on the other side of our view, which Sabah Government trying to facilitate their state as develop area. The rural peoples were suffered with the inconsistency of electricity to their home. How their kids want to revise their study over the night if there is always "black-out"? For me, the future of Malaysian next generation are more important rather then let this whole speculation floated around.
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