At the core of TNB's Energy Transition Plan, lies the ambition to achieve Net Zero emissions and coal-free plant operations by 2050. The transition to Net Zero emissions begins with an interim target of a 35% reduction in emission intensity by 2035 before achieving Net Zero Emissions by 2050. Delivery of these targets is anchored on our business operations, national policies and international frameworks on climate change that are aligned with supporting Malaysia’s ambitious goals of achieving carbon neutrality by 2050.

TNB Sustainability Report 2022: GHG emission intensity projection at TNB

A key element of TNB's Energy Transition Plan is the gradual shift away from fossil-based to a cleaner and sustainable power generation system. The transition to decarbonisation focuses on the progressive expansion of low-carbon generation assets and the phasing down of our coal-fired generation capacity in stages. This is further supported by the approach to efficiently operate the thermal power plant operations and invest in innovative solution research and development to scale up efficient energy generation and carbon capture technologies.

Through these deliberate efforts, we aim to meet achievable and visible targets to manage emissions from our operations and strengthen the resilience of our business. Achieving the ambitious targets requires a carefully planned Energy Transition strategy to manage emissions via:

• Reducing carbon emissions
• Adopting carbon capture technologies
• Exploring carbon market trading

Our Continuous Efforts Towards Carbon Management and Reduction

a) Cleaner Generation Capacity

• We are exploring the viability of retiring coal-fired power plants earlier than planned, subject to shareholders’ agreement and approvals from the relevant authorities and regulators. With this retirement exercise, we shall be paving the way to the repowering of power plants with cleaner technologies.


• The phasing down for coal-fired power plants is in stages, starting in 2029 till 2045, including Kapar Energy Ventures (KEV) Plant; Janamanjung unit 1-3 as well as Janamanjung unit 4-5; and Jimah East Power Plant. These coal-fired power plants are aimed to be repowered with green technology once the technology becomes viable.

b) Ammonia-Biomass Co-firing at Coal Power Plants

• Our partnerships with Mitsui & Co. and Chugoku are making substantial strides in advancing the feasibility study for co-firing coal with biomass and ammonia at Jimah East Power Plant under Phase 1 of the feasibility study. This initiative is a pivotal step forward in our commitment to reduce coal usage, concurrently aligning with our broader efforts to significantly decrease emissions from our plant operations.


• Following the successful completion of Phase 1, we started Phase 2, with an in-depth analysis of technical behaviours through small scale of actual co-firing with varying concentrations of ammonia and biomass. This phase involved conducting a Front-End Engineering Design (FEED) study for a small-scale co-firing project.


• A significant milestone was achieved with the successful execution of the EFB-Pellet Trial Burn for Unit 2 (1000MW) in September 2023. Notably, this marked the first Biomass MixFiring test for a Supercritical type of Boiler in Malaysia. The trial run demonstrated positive outcomes, showcasing observable reductions in emissions.


• Moving forward, further studies and actual tests to assess the technical behaviour under increased concentrations, e.g., 3%-5% of biomass and ammonia. This ongoing exploration is integral to refining and optimising our co-firing strategies for enhanced sustainability.

c) Hydrogen Fuel: Shifting Away From Fossil-Based Energy

We continue to accelerate the transition from a fossil-fuel-based energy mix to low-carbon energy sources such as hydrogen. Through strategic collaboration with IHI Corporation, we are working together strategically to reduce carbon emissions in identified TNB's coal-fired power plants. Our goal is to explore the practicality of using hydrogen in co-firing and conducting tests with different hydrogen concentrations to achieve targeted emission reductions. This collaboration focuses on both technical and commercial aspects, paving the way for a more sustainable energy future.

Partnership with Petronas

• TNB has signed a Memorandum of Understanding (MoU) with PETRONAS, aiming to expedite the decarbonisation process in the energy sector.


• Building upon the initial TNB-PETRONAS MoU signed on 19 August 2022, the parties are advancing toward a Definitive Agreement for a Joint Feasibility Study focused on green hydrogen as a clean energy alternative. The collaborative study aims to provide a comprehensive understanding of commercial viability, considering factors such as the levelised cost of electricity (LCOE), levelised cost of hydrogen (LCOH), levelised cost of storage (LCOS), and the sales price of hydrogen (H2).


• This study is anticipated to establish a solid foundation for TNB to expand its business activities throughout the hydrogen value chain.

d) Innovation Through Carbon Capture Technologies

• Through TNB's research subsidiary, TNB Research Sdn. Bhd. has been extensively involved in research and development (R&D) since the early 2000s to demarcate unwavering innovative green and clean technologies projects. Significant progress in the field of Carbon Capture and Utilisation (CCU) R&D was outlined when our pilot projects achieved promising results of absorbing up to 90% of carbon emissions from our coal-fired power plant flue gas. Reduction of energy requirements was also observed through the optimisation of the carbon capture process as follows:



Key Highlights from R&D projects

• First pilot algae bio-CCU technology in Malaysia tested with actual flue gas from live coal fire power plant.
• Four (4) local marine species of microalgae were identified to capture CO₂.
• Development of Microalgae Mass Cultivation and Monitoring Training Module for local and international participants.
• Able to capture up to 2.3g CO₂ /litre from 4,500 litre of outdoor microalgae culture facility.



• In 2023, TNB embarks on exploring the feasibility of CCS through a joint study with Petronas to capture, transport and store carbon deep underground in geological formations. We continue to work collaboratively with industry partners, academic institutions, and government agencies in order to accelerate our Energy Transition Plan and achieve the milestones towards Net Zero 2050.

e) Carbon Sequestration Through Tree Planting Programme

Planting trees is one of the best ways to absorb carbon dioxide (CO2) and with this simple action, helps to reduce the accumulation of greenhouse gases and thus, slowing down the impact of climate change. The trees also contribute many other benefits such as:

• Carbon sequestration: absorbing carbon dioxide from the atmosphere, which plays a role in climate change mitigation.


• Natural barrier: mitigating soil erosion caused by waves, excessive rainwater and storms.


• Biodiversity ecology system: supporting diverse species of flora and fauna.


• Care for life below water: mangrove species provide home for various sea creatures and plants species.

In 2023, we continue our tree-planting initiative through My Brighter Green Programme to commemorate TNB’s 74th Anniversary. This initiative is undertaken across TNB Group, in which we had planted about 67% of the targeted 74,000 trees at 39 designated areas across Malaysia (equivalent to ~2,974.8 tCO₂e carbon sequestered¹).

This initiative is still in progress and TNB shall continue to encourage communities’ involvement and generate greater awareness internally and externally on the importance of protecting our natural environment.

f) Exploring carbon market trading

TNB is exploring carbon offsetting for the remaining hard-to-abate emissions with nature-based carbon trading options. This solution is still at the development stage as we strive to implement carbon reduction initiatives first and aggressively invest in promoting renewable energy options and innovative technological solutions before pursuing the carbon trading market option.

Our Unwavering Commitment Towards Carbon Management and Reduction

As a key player in Malaysia's power landscape, TNB is unwaveringly committed to carbon management and reduction. We are determined to achieve Net Zero emissions and eliminate coal from our operations by 2050. Through strategic investments and innovative clean technologies, TNB is paving the way for a greener energy landscape. Our focus extends beyond meeting energy needs, where we are dedicated to minimising our carbon footprint and contributing to environmental preservation. As we embark on this journey, TNB invites collaboration and embraces the responsibility of shaping a cleaner, more resilient energy future for Malaysia and beyond, ensuring a sustainable legacy for generations to come.

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