This article first appeared in The Edge Financial Daily on October 12, 2017 - October 18, 2017

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) is setting up a RM200 million plant to generate electricity through the recovery of exhausted waste heat from cement plants.

TNB’s wholly-owned subsidiary TNB Repair and Maintenance Sdn Bhd will develop, operate and raise financing for the plant in a deal with Negeri Sembilan Cement Industries Sdn Bhd (NSCI), the utility giant said in a filing with Bursa Malaysia.

NSCI is owned by Cement Industries Malaysia Bhd, a member of UEM Group Bhd and a producer of high quality cement and ready mixed concrete.

NSCI owns two cement plants in Bukit Keteri, Perlis and Bahau, Negeri Sembilan with a total production capacity of 7.2 million tonnes per annum.

TNB said the waste heat recovery power plant will have a combined power generation capability of 23 megawatt by recovering the exhausted waste heat from the two cement plants. The project has the capability to reduce 9% to 12% of NSCI’s electricity cost.

The term sheet signing was held yesterday. It was signed by TNB Repair and Maintenance managing director Anuar Yusoff and Cement Industries managing director Mohd Yusri Md Yusof.

TNB said the new power plant will contribute towards green energy and energy efficiency through reduction of carbon emission as well as competitive advantage through energy cost savings for NSCI cement plants.

The group said its venture into the waste heat recovery development will provide a new business opportunity in promoting energy efficiency, green technology and a sustainable long-term energy solution.