KUALA LUMPUR (May 31): Independent Power Producer (IPP) Malakoff Corp Bhd said that its power plants including its coal plants will continue to run until 2031 and 2041 as agreed through its Power Purchasing Agreements (PPA) with the government made through Tenaga Nasional Bhd (TNB).

The group believes that by 2041, it will be able to either "switch off" or continue for security reasons, if need be.

“But the idea is that any megawatts that we want to do (add on), we want to ensure that we do not emit more carbon than we have to in terms of intensity,” said managing director and chief executive officer Anwar Syahrin Abdul Ajib in a press conference on Wednesday (May 31).

He noted that the group is a public-listed company that needs to ensure the continuity of its business in terms of revenue and profit, with RE as a way forward.

However, he also said that Malakoff's plants would ensure energy security as it is crucial in transitioning towards renewable energy.

“People know us for the kind of power plants that we have. But the plants that we have, fill in different roles in terms of ensuring energy security.

“So during any transition, we must make sure that security is there first before we switch into new sources of energy to come into the system.

“When we have the stability, we are more than willing to move fully towards RE.”

Chairman Tan Sri Datuk Dr Ir Ahmad Tajuddin Ali said that the group needs to attract investors by meeting environmental, social and governance (ESG) compliances.

“We have to make Malakoff more attractive to investors because by investment mandates, they cannot buy Malakoff shares [as] their investment mandate did not allow them to invest in counters that are not ESG compliant.”

He added that the group will look into reducing its plants’ carbon footprint through efficient coal burnings and treatments, while cooperating with Japanese firm, Itochu Corp, to explore decarbonisation initiatives.

“We need to offset that with initiatives beyond just energy, into environmental solutions as well.”

On the same day, Malakoff launched its rebranding initiatives towards renewable energy and environmental solutions through three entities namely The Malkoff Green Solutions, Malakoff Energy and Malakoff Environmental Solutions.

The Malakoff Green Solutions will emphasize renewable energy through solar, small hydro and carbon free mobility infrastructure, while Malakoff Energy involves power, gas and district cooling solutions.

The Malakoff Environmental Solutions focuses on recycling, marine waste, hazardous waste, waste management, water desalination and waste-to-energy projects.

The launch was officiated by Minister of Natural Resources, Environment and Climate Change (NRECC) Nik Nazmi Nik Ahmad. Also present were Datuk Mohamad Razif Haji Abd Mubin, Deputy Secretary General, NRECC and Mohammed Rashdan Mohd Yusof, Chairman of the Energy Commission of Malaysia.