TNB has, through its subsidiary TNB Power Generation Sdn Bhd (TNB Genco), received a letter of intent for the RM9.5 billion project from the energy and natural resources ministry.

The 2,100-megawatt (MW) capacity combined cycle gas turbine plant with hydrogen-fired combustion capability will be sited on land owned by TNB.

TNB will hold a 60% stake in the project while WBG, an investment holding company, will hold the remaining 40%.

In a media statement issued today, TNB said the new plant will use clean technology in support of its accelerated energy transition plan, driven by its objective to achieve net zero emission by 2050.

As part of the transition plan, TNB aims to reduce its coal generation capacity by half and carbon emission intensity by 35% by 2035.

TNB president and CEO Baharin Din said the new plant is projected to deliver earnings before interest and tax (Ebit) of about RM400 million per year.

In a separate statement, WBG said the new power plant is expected to begin operations by 2031.

WBG founder and group executive chairman Ikmal Opat Abdullah said this was the company’s first undertaking in the development of a combined cycle gas turbine plant.

“WBG seeks to build on the technical know-how gained from this project, alongside TNB, to undertake more such projects in the future,” he added.