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Malaysian Reserve
6 days ago
- Politics
- Malaysian Reserve
Nuclear plant shutdown leaves Taiwan facing energy crunch
Lack of long-term waste storage and Japan meltdown fuelled opposition to atomic power by SING YEE ONG & CINDY WANG IN 1996, a rust-streaked freighter carrying barrels of nuclear waste attempted to dock at Orchid Island off the south-east coast of Taiwan. It never made it to shore. Hundreds of residents, mostly from the island's indigenous community, blocked the vessel with fishing boats and rocks, forcing it to turn back. It was the last time nuclear waste was sent there. 'I told them, if they insisted on coming in, we would burn the ship that night,' recalled Kuo Chien-ping, one of the movement's leaders. Onshore, residents armed with rocks and bottles they claimed were filled with gasoline — it was actually water — lined the pier prepared to defend their island, also known as Lanyu. 'It was the first time the government really listened to us,' said Syaman Lamuran, whose entire family joined the protest. 'Everyone was there. Even my mother, barely 5ft tall, was clutching a stone.' That defiant moment — part resistance, part reckoning — helped shape Taiwan's decades-long retreat from nuclear energy. The island shut its last reactor on May 17, the culmination of a phaseout strategy that threatens Taiwan's energy-guzzling chip industry and its security as tensions with China rise. The move also runs counter to the growing global appetite for atomic power, especially in nations racing to fuel artificial intelligence (AI) infrastructure and meet climate change emissions targets. Taipower power plant on Orchid Island. The island derives energy from diesel and gets no electricity from nuclear plants Costly Decision Taiwan's decision comes with a steep price. The final reactor shutdown, the sixth since 2018, takes place just as power demand is projected to rise 13% by the end of the decade, largely driven by data centres and chipmakers. Each shuttered reactor adds about US$500 million (RM2.19 billion) in annual liquefied natural gas (LNG) import costs, according to Bloomberg calculations. Taking into account energy demand growth, Taiwan may need to spend around US$2 billion more per year on LNG purchases by 2030, according to a BloombergNEF analysis. Already, companies like Taiwan Semiconductor Manufacturing Co, or TSMC, face soaring electricity bills, with rates on the island surpassing those at their overseas plants. That's why nearly three decades since that standoff on Orchid Island, smaller and less hostile protests have been organised in downtown Taipei, this time in support of keeping the Maanshan nuclear plant on Taiwan's southern tip online. Over a hundred activists, including lawmakers and staff from state-utility Taiwan Power Co (Taipower), stationed themselves outside the Ministry of Economic Affairs early this month and raised red banners reading: 'The wrong policy will destroy Taipower.' Rising fuel costs and renewable energy (RE) investments have weighed on the finances of Taipower, the island's primary power supplier. The state utility, which has absorbed higher costs to keep prices affordable, reported over NT$420 billion (RM61.18 billion) in accumulated losses by the end of last year. That's putting pressure on the government to increase power rates for businesses and households. 'Taipower can only stop having losses if it extends the life of nuclear plants', because those facilities don't operate at a loss, said Java Yang, a Taipower worker and organiser of the May 1 pro-nuclear demonstration. 'We lost lots of money because the price of natural gas has surged, and we paid too much for RE.' There have been signs that the govern- ment is softening its stance. Taiwan's legislature revised a nuclear power bill on May 13 that effectively opens the door for a restart of the island's atomic plants by renewing or extending licences for up to 20 years, but it isn't clear if the central government will push forward with that strategy. For now, it's too late to halt the closure of Maanshan, which is hitting its 40-year operational limit. Premier Cho Jung-tai said it could take 3.5 years to safely restart a closed plant, citing an estimate from Taipower. Nevertheless, one of Taiwan's opposition parties said it intends to hold a public referendum on resuming operations at the plant in August. A similar vote in 2021 narrowly cemented the closure of one nuclear plant. This time could be different. 'Taiwan's public opinions seem to indicate that this referendum will definitely pass,' said Chang Chi-kai, a lawmaker from the Opposition Taiwan People's Party. 'The Referendum Act stipulates that when a referendum passes, the government has the responsibility and duty to implement it.' Nuclear waste treatment plant on Orchid Island. Lacking permanent disposal site, govt faces pressure to cut nuclear reliance Economic and Security Risks Starting in the early 1980s, shipping nuclear waste for storage on Orchid Island was standard practice, though most local residents weren't initially told what was happening. But following the highly-publicised protests nearly three decades ago, no other Taiwanese town was willing to accept the shipments. High-level waste, like spent fuel from reactors, was just stored on site at nuclear plants. With no permanent waste disposal site, the government was under increasing pressure to reduce atomic generation. Then came the 2011 Fukushima disaster in Japan — a magnitude 9.0 earthquake off the coast severely damaged the Fukushima Dai-ichi power plant, leading to a partial meltdown that released radiation into the surrounding air, water and soil. It was the worst nuclear accident since Chernobyl. That calamity — accompanied by a devastating tsunami — was the final nail in the coffin for Taiwan's nuclear industry. 'Taiwan has many geographical faults and we have a lot of earthquakes, so the risk of an accident happening here is higher,' said Tsai Ya-ying, a lawyer at Wild at Heart Legal Defence Association. 'One nuclear accident can be considered the end of Taiwan.' Following a decisive 2016 election victory, the Democratic Progressive Party cemented a complete nuclear phaseout into law. At the time, the goal was for Taiwan to accelerate the deployment of wind and solar to replace nuclear. But the island has fallen short on those goals. Initially targeting 20% renewables by mid-decade, the government downgraded its goal to 15% by 2025. As of late 2024, renewables made up less than 12% of the energy mix, according to Taiwan's energy administration. To maintain a stable power supply, Taipower is adding nearly five gigawatts (GW) worth of gas-fired capacity to the grid this year, equal to roughly five nuclear reactors. Taiwan's power supply will be stable through at least 2032, Premier Cho said last month. 'New electricity consumption has been taken into consideration, and the addition of new units is larger than decommissioning to ensure a stable power supply,' Taiwan's energy administration added. Removing nuclear from the energy mix will raise power generation costs by NT$100 billion annually, according to Chang, the Opposition lawmaker. Also at risk are green goals: Taiwan aims to reduce its emissions by about 38% in 2035 from 2005 levels. TSMC expects to hit peak carbon emissions this year. Following the reactor shutdown on May 17, Taiwan will derive roughly 84% of its electricity from fossil fuels — up slightly from 2024. Nuclear contributed about 5% of electricity generation in 2024, down from 20% in the early 2000s. While nuclear generates toxic long-term waste, it produces almost no greenhouse gas (GHG) emissions, unlike coal and gas. Global Trend 'If we phase out nuclear, our carbon emissions will spike,' warned Eugene Chien, a government advisor who heads the Taiwan Institute for Sustainable Energy, or TAISE. He noted that environmental concerns are pushing more citizens to reconsider nuclear energy. In November, a TAISE poll showed 58% of respondents supported nuclear power, while 23% opposed it. That's an increasingly global trend. Even Japan has moved away from its decision to shut down nuclear plants — last month its atomic watchdog approved the first nuclear restart since 2021. Nations from the US to Belgium are taking similar steps. Moreover, Taiwan's reliance on seaborne LNG shipments to fill the gap doesn't just heighten environmental concerns — it creates a strategic vulnerability amid rising tensions with China, which considers the self-governing island to be part of its territory. A Chinese blockade could prevent deliveries and quickly drain gas reserves. With just 11 days of gas storage, Taiwan faces a serious risk if shipments are disrupted by conflict or disaster, Chien said. Even with pockets of support for nuclear emerging on Orchid Island, many of its roughly 5,000 residents remain wary, fearing links between the waste and health issues, including cancer and deformities in local fish. While earlier protests succeeded in halting new waste shipments, efforts to move the existing waste have largely stalled. 'I've fought for 30 years,' said Kuo from Orchid Island. 'How many 30 years do we have in life? I am still fighting.' — Bloomberg This article first appeared in The Malaysian Reserve weekly print edition
New Straits Times
22-05-2025
- Business
- New Straits Times
Sunway posts higher 1Q net profit of RM190.55mil
KUALA LUMPUR: Sunway Bhd recorded a higher net profit of RM190.55 million in the first quarter ended March 31, 2025 (1Q 2025), an increase of 11 per cent from RM172.22 million in the same period last year. Revenue also rose by 67 per cent to RM2.36 billion from RM1.41 billion previously, mainly due to higher contributions from all business segments except for the property development segment. Operating expenses, however, increased 69 per cent to RM2.19 billion in 1Q 2025 compared to RM1.30 billion in the previous corresponding quarter. In a Bursa Malaysia filing, Sunway said its property development segment reported revenue of RM263.3 million compared to revenue of RM287.7 million in 1Q 2024, attributed to lower progress billings from local and overseas development projects. "It should be noted that in compliance with the Malaysian Financial Reporting Standards (MFRS) 15, the development profits from one of the group's ongoing Singapore property development projects will only be recognised upon completion and handover of the project. "As a result, the accumulated progressive profits of this project at the end of the current quarter of RM12.2 million were not recognised," it said. Barring any unforeseen circumstances, the board is confident that Sunway will cautiously navigate the headwinds surrounding tariffs and policy uncertainties. It added that the group's performance for the year is expected to remain strong.-- BERNAMA
The Sun
25-04-2025
- Business
- The Sun
Malaysia well-positioned to drive decarbonisation in global aviation: Nik Nazmi
KUALA LUMPUR: Malaysia stands to be the future global hub for clean aviation fuel as there is a growing global urgency for decarbonisation and Malaysia's untapped potential. Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad said with global aviation shifting towards green solutions, Malaysia is seizing the opportunity to lead by building on its strengths in logistics, infrastructure, and policy. 'I urge Malaysian entities to step up and explore synergistic collaborations that will strengthen Malaysia's position in the global green energy landscape,' he said during the signing ceremony between Bin Zayed International (M) Bhd (BZI) and Malaysia-based FatHopes Energy (FHE) today. BZI and FHE have affirmed their commitment to invest RM2.19 billion (US$500 million) to develop the world's first integrated sustainable aviation fuel (SAF) refinery in Port Klang. According to Nik Nazmi, the strategic partnership between BZI and FHE signals Malaysia's emergence as a significant player in the global clean energy and low-carbon economy. 'The development of a world-scale SAF refinery in Malaysia is of immense strategic importance. This investment will serve as a catalyst for far-reaching transformation across our energy and aviation sectors.' Nik Nazmi said that by reducing reliance on imported SAF and unlocking Malaysia's potential as a regional producer and exporter, the country is paving the way for a more self-reliant and competitive green economy. This project addresses one of the most pressing challenges – decarbonising the aviation sector, he added. 'The development of the SAF refinery will contribute meaningfully to decarbonise the aviation sector, enabling the aviation company to meet their emissions reduction target, supporting energy transition and contributing towards Malaysia's net-zero aspiration,' Nik Nazmi said. BZI managing director and Bin Zayed (S) Pte Ltd executive director Datuk Seri Shamir Kumar Nandy said the partnership with FHE is more than a business venture. 'It is a statement of our long-term commitment to Malaysia and the region. We believe this project can anchor Malaysia's leadership in the global SAF economy while supporting regional decarbonisation goals and ESG-aligned industrial growth,' he said. Although the percentage of equity BZI will hold in FHE is still being finalised, Shamir Kumar confirmed that the company will be underwriting the full RM2.19 billion cost of the refinery. 'We are fully committed to getting this refinery up and running – whatever it takes. With solid financial backing, we are moving forward confidently, driven by our belief in the project's long-term sustainability and commercial potential,' he said. Construction is expected to begin within the next 12 months, pending regulatory approvals and environmental clearances. The project targets a final investment decision by mid-2026, with commercial operations set to begin by 2029. According to FHE CEO Vinesh Sinha, the refinery, which is currently in the feasibility stage, could produce up to 300,000 tons of SAF annually. This will require an estimated 330,000 tonnes of feedstock, predominantly waste-based oils such as used cooking oil and other residual fats, sourced through FHE's extensive network across Southeast Asia and India. The refinery will adopt a multi-feedstock approach, supported by FHE's proprietary digital traceability platform that ensures supply chain integrity and emissions transparency from collection to production. 'This is not just about building a plant. It is about creating an ecosystem that transforms waste into value, enables industrial decarbonisation, and propels Malaysia into the next era of clean aviation,' Vinesh said. Malaysia's domestic feedstock alone would not be sufficient to sustain the plant's operations, he added, hence the importance of regional sourcing. 'Malaysia is a small country in terms of population, and we do not generate the required volume of waste oils locally. Our supply chain has grown over the last 15 years to cover most of Southeast Asia and parts of India,' he said. Vinesh acknowledged the project will face technical and regulatory challenges, including major infrastructure upgrades at Port Klang and securing key inputs such as hydrogen and nitrogen. 'As the first facility of its kind in Malaysia and the region, we're working closely with authorities to chart the way forward,' he said. While the long-term vision is for SAF to be produced in Port Klang to serve Malaysia's domestic aviation sector, he said the refinery is being designed with flexibility in mind to accommodate both local and export markets. 'We are hopeful that Malaysia will adopt stronger SAF mandates, which would allow all the fuel to be consumed locally. But initially, we will balance domestic supply with export demand, depending on policy frameworks and offtake agreements.' While the long-term goal is to serve Malaysia's domestic SAF demand, contingent on future government mandates, Vinesh said the facility will initially balance both local and export markets, adjusting as the regulatory environment evolves. 'If the 47% mandate comes into play, we could see all of it used domestically.'
Free Malaysia Today
25-04-2025
- Business
- Free Malaysia Today
BZI to invest US$500mil for fuel refinery in Port Klang
BZI Malaysia managing director Shamir Kumar Nandy (front row, second from left) and FHE CEO Vinesh Sinha (front row, second from right) during a signing ceremony between BZI and FHE for a sustainable aviation fuel refinery plant. KUALA LUMPUR : Bin Zayed International (BZI) has inked a deal with FatHopes Energy (FHE) to invest an estimated US$500 million (approximately RM2.19 billion) in a sustainable aviation fuel (SAF) refinery plant to be built in Port Klang, Selangor. The plant, set to break ground 12 months from today, is said to be the world's first integrated SAF refinery. BZI Malaysia managing director Shamir Kumar Nandy said the company was also negotiating for a stake in FHE. 'At the moment, we are still negotiating the percentage that we would acquire. 'However, moving forward, our commitment is to take up the entire investment for the building of the refinery,' he told reporters after the signing ceremony here today. FHE CEO Vinesh Sinha said the refinery plant would have a SAF production capacity of 300,000 tonnes per annum, requiring 330,000 tonnes of feedstock. He said the feedstock, sourced from Southeast Asia and beyond, would be mainly waste and residue from used retail and commercial cooking oils. He said once the oil had been refined into SAF, it would be introduced to the domestic market. Vinesh said FHE was currently focused on obtaining the necessary approvals from the government before the construction of the plant, while navigating other challenges such as sourcing for input materials like hydrogen and nitrogen for the refinement process. The project, set to advance in phases over the next 12 months, aims for a final investment decision by mid-2026, with commercial operations targeted for 2029. The ceremony was also attended by BZI chairman Sheikh Khaled Zayed Saquer Zayed Alnahyan and natural resources and environmental sustainability minister Nik Nazmi Nik Ahmad. Nik Nazmi said the collaboration between BZI and FHE positioned Malaysia as a frontrunner in clean aviation fuels, aligned with the National Energy Transition Roadmap, and supported Asean's collective climate goals. Last November, BZI made headlines after it withdrew from the RM40 billion 99-island Langkasuka land reclamation project in Langkawi, Kedah. At the time, Shamir said the group had withdrawn from the project to focus on more promising, realistic and high-potential opportunities. BZI entered into an agreement with private company Widad Business Group Sdn Bhd in March 2021 to form a special-purpose vehicle called Widad BZI Sdn Bhd for the Langkasuka project.
