Malakoff signs Sungai Udang WTE concession in Melaka
The deal involves the design, construction, financing, operation, maintenance, and eventual closure of a waste-to-energy (WTE) facility located in Sungai Udang, Melaka.
Sungai Udang WTE is a special-purpose joint venture for the project, with Malakoff holding a 60 per cent stake, while the remaining 40 per cent is owned by Alam Flora Environmental Solutions Sdn Bhd (AFES).
AFES is a wholly-owned subsidiary of Alam Flora Sdn Bhd, which is 97.37 per cent owned by Malakoff.
In a statement, Malakoff said the WTE facility is designed to process up to 1,056 tonnes of municipal solid waste daily and will produce around 22 megawatts of gross renewable energy.
This will be done under a power purchase agreement to be signed between Tenaga Nasional Bhd and the concession company.
Managing director and group chief executive officer Anwar Syahrin Abdul Ajib said the facility plays a crucial role in tackling Melaka's pressing waste management challenges, especially as the state's sole sanitary landfill approaches full capacity.
"By diverting over 300,000 tonnes of waste from landfills annually, the plant is expected to eliminate 75,000 tonnes of carbon dioxide emissions, which is equivalent to preserving more than 3.4 million trees and preventing 23,000 cubic metres of leachate from polluting local waterways.
"Malakoff currently manages 3,649 tonnes of waste per day. With this project expected to add another 1,056 tonnes daily, we will have the capacity to manage up to 6,206 tonnes per day based on our existing contracts, concession agreements and available assets," he said.
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Malaysian Reserve
2 days ago
- Malaysian Reserve
50 years on, Malakoff balances energy security with cleaner goals
Marking its 50th anniversary, Malakoff expands its role with a shift toward renewables, waste-to-energy and ESG-led growth By HIDAYATH HISHAM MALAKOFF Corporation Bhd (Malakoff) marks its 50th anniversary this year as Malaysia's largest Independent Power Producer (IPP), reaffirming its pivotal role in securing the nation's energy supply while pushing forward into cleaner and more sustainable energy solutions. The company has steadily expanded beyond its thermal roots, integrating solar, waste-to-energy, and ESG-aligned initiatives into its portfolio. These steps align closely with Malaysia's National Energy Transition Roadmap (NETR) and its net-zero aspirations. One of them is the Malakoff-owned 1,303 MW combined-cycle gas turbine (CCGT) plant, the Segari Energy Ventures (SEV) Power Plant in Lumut, Perak. It is the second-largest IPP-owned CCGT plant in Malaysia. Also known as the Lumut Power Plant, it was built in 1996 and was the largest CCGT plant in Malaysia at the time. For its plant manager Anwar Faisal Mohamed Din, Malakoff's shift is both timely and necessary. With three decades of experience under his belt, Anwar sees this evolution not only as strategic — but deeply personal. 'The rebranding in 2023 signalled more than a new look — it represented a transformation of purpose. 'We are no longer just a thermal power company; we are becoming a comprehensive energy and environmental solutions provider,' he told The Malaysian Reserve (TMR). As the country gradually reduces its reliance on thermal generation, Anwar believes the approach must be responsible and well-calibrated. 'The transition is both necessary and ambitious. While reducing reliance on thermal power is a positive environmental step, it must be done strategically to avoid compromising energy security,' he explained. He advocates hybrid generation models that combine the reliability of thermal plants with the flexibility of renewables. 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'Moreover, our operational excellence, rigorous safety standards and strong engineering capabilities position us as a trusted partner in national energy planning,' he said. Anwar's insights are shaped by a career spent 30 years with Malakoff, during which he had been stationed to various plants. Born and raised in Teluk Intan, Perak, he joined Malakoff in 1995 after graduating in Chemical Engineering from the University of Leeds, England. He recalled entering the workforce young and eager, in an era when plant operations were more manual and digital systems were still in their infancy. 'But that environment taught me discipline, attention to detail and the importance of teamwork,' he shared. What has kept him loyal over 30 years is not just the work itself, but the people and shared sense of purpose. 'Loyalty to me is not just about staying — it is about growing with a purpose. Malakoff has consistently provided opportunities for development and meaningful work. But what kept me here are the people — some of the most dedicated and hardworking individuals I have known,' he said. One of his most defining career moments was leading a critical plant overhaul under tight constraints — an experience that tested his leadership and highlighted the power of unity. 'We were racing against time and managing limited resources. Despite the odds, my team rose to the occasion. We completed the job safely, efficiently and ahead of schedule,' he said. It was not just the technical success that made the moment memorable, he reflected, but the collective spirit that drove it. He also reflected on the challenges brought by the Covid-19 pandemic, calling it a turning point in his leadership journey. 'The situation tested every aspect of leadership — resilience, crisis management and decision-making under pressure. 'But we overcame it through clear planning, communication and most importantly, the unwavering commitment of the team,' he said. Lumut Power Plant plays a vital role in delivering reliable and safe power, contributing to grid stability and national energy security While technical skills and strategic foresight have been essential in his career, Anwar believes humility is just as important in leadership. He shared that staying grounded has helped him make better decisions, connect with his team and continuously learn from those around him. 'Humility is a value I hold close. It reminds me that leadership is not about having all the answers, but about listening, growing and lifting others along the way,' he said. Looking forward, Anwar remains confident that thermal plants — with a greener footprint — will continue to play a major role in ensuring base load stability. 'The future plant must be smart, flexible and efficient. The focus now is not just on generation, but on how we generate — with responsibility and long-term impact in mind.' This is in line with the growing need of energy, with Malaysia rapidly emerging as a regional hub for data centres. A growing number of facilities are being developed to meet increasing demand for digital infrastructure. Energy consumption by data centres varies widely. According to the Khazanah Research Institute, a small-scale traditional data centre with 500 to 2,000 servers may require between 1 and 5 MW of power, while a hyperscale facility housing tens of thousands of servers could demand anywhere from 20 MW to over 100 MW. By 2035, the total energy usage of data centres in Malaysia is expected to exceed 5,000 MW. Cross-border collaboration, shared excellence. Anwar (seated, left) with the dedicated team of Merak Energi, Indonesia (2014–2017) Meanwhile, Anwar sees Malakoff evolving into a regional force in both energy and environmental innovation, with Lumut Power Plant playing a leading role in the transition. 'I envision Lumut as a model facility for hybrid solutions — blending reliability with sustainability. I hope that my contribution in shaping its culture, systems and people will continue to echo in the years to come,' he said. To young professionals entering the sector, he offers a message rooted in values and purpose. 'This is an exciting and crucial time to be part of the energy sector. My message to the younger generation: Come in with curiosity, stay grounded in values and never stop learning. 'Be bold, but be humble. Energy is no longer just about output — it is about impact,' he said. As Malakoff celebrates five decades of powering the nation, Anwar shared a message of gratitude to his colleagues. 'To team Malakoff — thank you for your dedication, your spirit and your belief in our purpose. You are the heart and soul of everything we have achieved. 'As we celebrate 50 incredible years, let's take pride in our past and move forward with even greater passion and unity. The best is yet to come!' he said. This article first appeared in The Malaysian Reserve weekly print edition
The Star
03-08-2025
- The Star
New projects to drive Malakoff's growth outlook
PETALING JAYA: A confluence of new project bids is putting Malakoff Corp Bhd back on investor watch lists after having been below the radar in recent years, analysts say. Firstly, they see the Malakoff standing a strong chance in securing short-term extensions for its power plants, which power purchase agreements (PPAs) are expiring soon. About a month ago, the government had invited interested companies to submit proposals for the supply of electricity for the 2025 to 2029 period under two categories, one being the extension of contracts for of existing gas-fired power plants with expiring or expired PPAs. UOB Kay Hian Research (UOBKH Research) said it understands that Malakoff has submitted proposals to extend the operations of three of its gas-fired plants – Prai, Segari and GB3 – under this category. The other category the government opened bids for is for the development of new gas-fired power plants. The research house said it expects Malakoff to win a 1,400MW gas-fired power plant as the group has idle land in Port Dickson, following the retirement of the Port Dickson power plant in 2019. 'A decision by the government is expected by September or October, and we expect positive news. 'The potential award for a new gas-fired power plant is worth 22.5 sen a share or around 25% of Malakoff's market capitalisation, assuming a 9% internal rate of return for the project,' UOBKH Research said in a report. The research house has a RM1.08 target price on the stock. On the group's waste-to-energy (WTE) plant in Sungai Udang, Melaka, UOBKH Research expects the project to achieve financial close by mid-2026. Construction of the facility will begin after that and will take about three years. 'The project cost is estimated at RM580mil to RM660mil. The PPA is over a period of 21 years but the waste collection concession is over 34 years. This contract win is positive for Malakoff as the group embarks on its renewable energy (RE) journey,' said UOBKH Research. Notably, this will be Peninsular Malaysia's third WTE facility. Another 10 to 15 WTE facilities are expected to be developed in the coming years as the country ramps up its waste management and RE infrastructure. The research house noted that the group's wholly-owned subsidiary Alam Flora Sdn Bhd, which is one of the largest concession holders for solid waste management in the country, has a healthy concession worth RM2bil based on a run-rate net profit of RM100mil annually 'Alam Flora has been dishing out dividends during the past two years and will likely support dividends in 2025 to 2026. We understand that Alam Flora is exploring new concessions in other states within Peninsular Malaysia.' Alam Flora currently operates in Kuala Lumpur, Putrajaya and Pahang. Meanwhile, for the second quarter of this year (2Q25), the research firm expects a possible rebound in Malakoff's earnings as rising coal prices could lead to a reversal of previous coal inventory write-downs. 'Recall that 1Q25 net profit was adversely affected by a RM40mil provision for coal net realisation value (NRV) for the period of January to May. About 80% of the NRV came from Tanjung Bin Power Plant itself. We expect at least a normalised net profit of RM70mil per quarter in the absence of coal provisions,' UOBKH Research said.
The Star
01-08-2025
- The Star
Waste repurposing plan sparks mixed reactions
PETALING JAYA: Optimising agricultural waste to promote a circular economy and expanding waste-to-energy (WTE) plants to reduce dependence on landfills under the 13th Malaysia Plan (13MP) have drawn varied responses from environmental groups and experts. Centre to Combat Corruption and Cronyism event and projects officer Wong Si Peng stressed the importance of viewing waste as a resource for a circular economy. She said ensuring proper separation of waste was crucial for sound recovery paths and clean renewable energy. She believes Malaysia should explore anaerobic digesters for WTE purposes as food waste constitutes 44% of the country's municipal solid waste. 'If all the food and organic waste are separated, they can be converted into green energy using the anaerobic digester technology before being sent to biogas facilities.' However, Greenpeace Malaysia Climate and Energy Campaigner Hamizah Shamsudeen views WTE as a short-term solution. 'Malaysia needs holistic methods to combat waste management issues. We must reuse and repurpose, such as agricultural waste.' She added that WTE is not a significant solution for achieving net-zero emissions by 2050, citing concerns about carbon emissions throughout its lifecycle, high operating costs, energy consumption and safety issues. Meanwhile, environment and waste management specialist Dr Theng Lee Chong said the government needs to be more transparent with the cost of this paradigm shift from landfills to WTE in the coming years. 'How will the financial model work and who is going to bear the costs?' he asked. Theng said the selection of a good WTE system is crucial, as it is expensive, especially when it becomes a private initiative. Universiti Malaya Institute of Advance Studies Honorary Professor Dr Sumiani Yusoff welcomed the idea of reducing landfill dependency, acknowledging Malaysia's abundant biomass for energy conversion. She emphasised the need for proper planning, implementation and meticulous management of these facilities. 'We need the waste to be properly segregated. We have talent here but we need to provide adequate training to those who will be managing these waste-to-energy facilities.' During the tabling of the 13MP in Parliament, Prime Minister Datuk Seri Anwar Ibrahim said the use of agricultural waste will be optimised in driving the circular economy and generating new, sustainable added value.
