Malakoff Corporation Berhad (Malakoff) has played an important role in ensuring the nation’s energy supply is secured and sustained as a significant independent power producer (IPP) since 1993. The energy producer is the largest IPP in the country with an effective generating capacity of 5,342 megawatts. in Malaysia, Malakoff’s power output is combined with an impressive contribution of renewable energy (RE) capacity of 40 megawatt peak, which continues to grow by leaps and bounds. This is a testament towards the Group’s aspiration to become a green, ethical business entity in cognisant of acknowledging the concerns of people and planet.
The Group’s stellar capability has even allowed it to expand overseas with a strong presence in power and water ventures in countries like Saudi Arabia, Bahrain and Oman where it has an effective power generation capacity of 588 megawatt and water desalination capacity of 472,975 m³ per day.
These achievements are several milestones along Malakoff’s journey. The Malakoff of today is focused on RE, environmental solutions, and water desalination, which places people in the core of its business decisions. The Group has diversified its portfolio to include solar, small hydro, and waste-to-energy.
Reinforcing its commitment to recycling and sustainable waste management, the Group’s subsidiary, Alam Flora is among the nation’s largest environmental management company, managing a whopping 5,748 tonnes of solid waste per day. The company not only helps communities rid of their waste, Alam Flora also prevents landfills swelling up by sorting these waste by recycling and repurposing them in their multimillion ringgit facilities.
With such a massive undertaking, the move towards transitioning to a green and sustainable energy producer will definitely be closely watched by other power producers who are out there embarking on their own sustainability journey.
Commenting on the rebranding tasks that lie ahead, Business Today spoke to Managing Director/Chief Executive Officer (MD/CEO) Anwar Syahrin who shared his views on green energy, and sustainable power generation.
“It is no simple task for energy producers to embrace a sustainable mode of operation while delivering great value,” he said.
“Malakoff’s ability to significantly contribute to the energy security of our nation, while remaining as a prominent custodian of the earth, is strong evidence of our mastery over the energy sector. But we are never complacent, for our techniques can always be improved upon, our technology made greener, and our targets raised higher,” he added.
Anwar, who has been with the Group since 2020 brings a considerable wealth of experience in strategic and management consultation, tribute to his career as Managing Director of Business Associates Consulting Sdn Bhd.
Among his other notable roles were his appointment as Pelabuhan Tanjung Pelepas Chief Financial Officer (CFO), in 2006, then appointed as Director/Group CFO of MMC Corporation Bhd (MMC) in June 2008. He also assumed the position of Group Head for Ports and Logistic Division of MMC from January to August 2014. Prior to joining Malakoff, he was the MD/CEO of UEM Sunrise from 2014 until 2020.
Accordingly, the power producer’s switch to sustainable energy is underlined by its desire to stay relevant to the changing needs of customers, stakeholders and investors. And with it comes the rebranding initiative to mark Malakoff as a conscientious green energy producer, one that plays a vital role in a world threatened by climate change.
Clear evidence on its transition process is the new corporate logo which has changed from a very corporate stoic logo to a new refreshed vibrant design. Noticeably, are the three fins anointed with refreshing colours, symbolising the focus on people, planet, and prosperity. The logo also represents the three new entities that will fulfil Malakoff’s green aspirations.
The triumvirate under the corporate umbrella are – Malakoff Green Solutions, Malakoff Environmental Solutions and Malakoff Energy.
Green Energy Solutions
Through the Malakoff Green Solutions, the organisation intends to develop and enhance its RE solutions, among them being solar, small hydro and carbon free mobility infrastructure through electric vehicle (EV) charging.
From 2022 to date, Malakoff has secured 12 rooftop solar projects with a total capacity of 11.1 megawatt peak, the latest being KYB-UMW Phase 2, Attana Hotels & Resorts and PHB Industry.
According to Anwar, an agreement has also been completed with Senai Airport to develop and operate a solar PV facility that generates up to 0.615 megawatt peak.
“Incredibly this project generates about 800 megawatt hour worth of electricity annually, resulting in a carbon reduction of 555.2 tCO2e, equivalent to the carbon sequestration of 14,236 trees,” said Anwar.
More recently, Malakoff entered into a Head of Agreement on the construction of three small hydroelectric RE plants in Kuala Krai, Kelantan, with a collective capacity of 84 megawatts. This marks a significant milestone towards leveraging hydro as a technology pillar to achieve a low carbon energy industry.
Environmental Solutions
The second entity offers solutions across recycling, marine waste, hazardous waste, waste management, water desalination and waste-to-energy. Note that landfills emit greenhouse gas (GHG) in the form of methane, and the effective management of waste will reduce this.
Alam Flora plays a prominent role in this regard, having run over 60 programmes under its 3R on Wheels platform to collect over 51,248 kg of recyclables.
One of the notable programmes is the partnership with Nestle Malaysia to launch a kerbside recycling programme in 15 townships in Greater Kuala Lumpur.
“Our initiative is to recover post-consumer plastic in one hand, and in the other, enhance consumer awareness of how to recycle plastic effectively,” said Anwar.
Future Sustainable Energy
Thermal generation is the focus for Malakoff Energy, from future gas projects to district cooling solutions, to alternate biomass for energy generation. The utilisation of biomass co-firing at the Tanjung Bin Power Plant is a fine example.
This renewable alternative efficiently and cleanly converts biomass to electricity by adding it as a partial substitute fuel in high-efficiency coal boilers. Trial burns conducted on 28 December 2022 were completed successfully utilising oil palm empty fruit bunch pellets.
“We have also signed a memorandum of understanding with ITOCHU Corporation of Japan to study the feasibility of co-firing their coal plants in Johor with hydrogen and ammonia,” said Anwar.
He added that the project, which is supported by the Japanese Ministry of Economy, Trade and Industry, will be a crucial step towards reducing carbon emissions while leveraging said substances as transitional fuel.
ESG Roadmap
At the heart of all this is the Malakoff 2.0 Strategic Transformation, which charts the organisation’s environmental, social and governance (ESG) roadmap.
“Our ESG-driven action plan enables a low-carbon, resource-efficient sustainability agenda that supports long-term growth as we accelerate the transition to a decarbonised society,” commented Anwar.
The pursuit of such lofty goals cannot be achieved without a measurable target. Thus, the organisation stated its objective to reduce GHG emissions intensity by 30% by 2031 from a 2019 baseline.
On the RE front, Malakoff seeks to create 1,400 megawatts worth of energy by 2031 as well as improve revenue contribution from RE and environmental solutions to at least 50% in the next 10 years.
“We are targeting to collect, handle, and manage waste volume of 10,000 tonnes per day by 2031. Malakoff plans to achieve a 15 to 20% recycling rate by 2025, from waste collected by Alam Flora,” said Anwar.
This comprehensive roadmap and the many achievements along the way consolidate to realise Malakoff’s cherished values, bringing about a cleaner, more energised world for all.
