PETALING JAYA: The Maharani Energy Gateway (MEG) project in Muar, Johor, has secured a US$2 billion (RM9.5 billion) investment from China Energy Engineering Corp (CEIG) for the construction of a combined cycle gas turbine power plant and a green hydrogen and green ammonia plant.
Investment, trade and industry minister Tengku Zafrul Aziz said the facilities will complement the surrounding petroleum, petrochemical as well as oil and gas industries in Johor while helping to position Malaysia as a renewable energy-focussed country and a regional hub for sustainable energy.
“Policies such as the New Industrial Master Plan 2030 and the New Energy Transition Roadmap have resulted in many foreign parties forging collaborations with our domestic players to drive the nation’s greener future, such as the one between MEG and CEIG,” he said after witnessing the signing of two agreements between the two parties today.
“We welcome the impactful spillovers from MEG, including employment opportunities for our people, supply chain prospects for our SMEs, as well as Malaysia’s improved trade and investment opportunities with China.”
MEG executive chairman Daing A Malek Daing A Rahaman said the cycle gas turbine power plant will use natural gas and hydrogen to generate electricity, which can be exported to the national grid or neighbouring countries.
“The joint venture project will complement Malaysia’s green energy initiatives, which include various programmes and policies to promote the development and adoption of renewable energy sources,” he said.
The collaboration also aligns with Malaysia’s plan to increase the target for installed renewable energy capacity from 40% in 2040 to 70% by 2050.
The Maharani Energy Gateway is a sea reclamation project off the coast of Muar. It aims to create an energy hub and deep-sea port by building three artificial islands covering an area of 1,295 sq ha and creating 45,000 job opportunities.