MIDA e-News

Sarawak Energy Bhd (SEB), which has committed to supply some 75% of its electricity output from the Bakun and Murum hydro dams to companies in the Sarawak Corridor of Renewable Energy (Score), has moved into expanding its generation capacity.

In a media release, SEB said the expansion includes the development of the 1,000MW Baram dam project, where it has commenced a full-scale social and environmental impact assessment (SEIA).

The final decision on the project would be made after the findings and upon obtaining the related approvals, it added.

Another of SEB's generation capacity expansion project is the development of a 600-MW Balingian coal-fired power plant.

The Bakun project, where four of its eight 300 MW capacity turbines have been commissioned, is expected to generate some 1,771 MW when fully operational next year.

The Murum dam, located upstream of Bakun dam will be able to generate 635MW when fully commissioned in 2014.

The power supply generated from these sources will be able to serve companies such as Tokuyama Malaysia Sdn Bhd, OM Materials (Sarawak) Sdn Bhd (500 MW), Press Metal Bhd (480 MW) and Asia Minerals Ltd (270 MW).

Tokuyama Malaysia, which is investing in a poly-crystalline silicon plant in Samalaju Industrial Park, yesterday signed a power-purchase agreement (PPA) with SEB's unit, Syarikat Sesco Bhd, for a 10-year supply of 140 MW for its first phase development while its second phase, currently in progress will require an additional 220 MW.

The PPA was signed by SEB Chief Executive Officer, Torstein Dale Sjotveit and Tokuyama Malaysia President, Akira Sanuki on behalf of their respective entities, witnessed by Sarawak Chief Minister Tan Sri Abdul Taib Mahmud.

Sanuki said Tokuyama phase I project, which was 80% completed, would commence partial production in June 2013 while its phase II project had started in February this year.

The plant would have an annual production capacity of 6,000 tonnes, when fully operational, he added.

Sanuki said the company was attracted to set up its second facility in Sarawak due to the supply of cost-competitive power from the Bakun project.

OM Sarawak, a 80:20 joint venture between OM Holdings group and state-owned Cahya Mata Sarawak Bhd (CMSB), is investing US$500 million to set up a manganese and ferro-silicon alloy smelting plant, which is expected to start production testing from the second half of 2013.

Press Metal, which has invested in a 240,000- tonne capacity aluminium smelter in Samalaju is expected to commence operations next month.

The new smelter is two times the capacity of its Balingian smelter in the Mukah Division, which also gets its power supply from the Bakun dam.

Meanwhile, Asia Minerals’ RM790 million manganese ferro-alloy smelting plant is expected to be operational by July next year.

Adapted from StarBiz 31 May 2012