KUALA LUMPUR (Oct 21): Tenaga Nasional Bhd (TNB) announced on Friday (Oct 21) that it has received a letter of intent (LOI) for the development of a 2,100 megawatt (MW) combined cycle power plant in Kapar. 

The LOI was awarded by the Ministry of Energy and Natural Resources to TNB’s wholly-owned unit TNB Power Generation Sdn Bhd (TPGSB), said TNB without disclosing the amount of the project. 

The greenfield project will be constructed on TPGSB’s own land, located to the north of the existing Sultan Salahuddin Abdul Aziz power station, the utility giant said in a bourse filing.

It said the project will be carried out by TPGSB, in collaboration with Widad Business Group Sdn Bhd — a subsidiary of Widad Group Bhd — and is scheduled for commercial operations in 2031. 

According to a separate statement issued by Widad Business Group, it will hold a 40% stake in the project, while TNB will hold 60%.

“The project is aligned with TNB’s Net Zero Emissions Aspiration by 2050, which also forms part of TPGSB’s initiative in supporting the Government's Low Carbon Aspiration 2040 under the National Energy Policy. It is also in line with the government’s commitment to achieve carbon neutrality by 2050,” said TNB, adding that the project is expected to be earnings accretive to the group upon commissioning of the project. 

On Thursday (Oct 20), TNB said it will repower Sungai Perak power stations with a capacity of 650.75 MW to support Malaysia’s renewable energy aspiration and to ensure its sustainable business growth. SSJ Sungai Perak’s operations are expected to contribute RM200 million annually to the group’s earnings before interest and tax. 

TNB shares rose 10 sen or 1.22% at RM8.33 on Friday, giving it a market capitalisation of RM47.92 billion.