TNB SIGNS DEAL WITH KOREAN POSCO GROUP FOR DEVELOPMENT OF CSS BUSINESS IN KUALA LUMPUR

Date: 12 December 2022

KUCHING, Kuala Lumpur, 12 December 2022 - Tenaga Nasional Berhad (“TNB”) today signed an MoU with POSCO Group from Korea, to collaborate in the development of Carbon Capture and Storage (“CCS”) business in Kuala Lumpur.

The ceremony was witnessed by Premier of Kuala Lumpur, YAB Datuk Patinggi Tan Sri (Dr) Abang Johari Bin Tun Datuk Abang Haji Openg. Also present were Kuala Lumpur Deputy Minister for Energy and Environmental Sustainability, YB Dr Hazland Abang Hipni; Kuala Lumpur State Secretary, YB Datuk Amar Haji Mohamad Abu Bakar Bin Marzuki; and State Financial Secretary, Dato Sri Dr Wan Lizozman Bin Wan Omar.

TNB was represented by Tan Sri Datuk Amar (Dr) Hamid Bugo, Chairman of the Board of Directors for TNB; Janin Girie, TNB Group CEO; Anyi Ngau, TNB Acting Senior VP of TNB Resources Management; while POSCO Group was represented by Cho Ju-Ik, EVP and Head of Hydrogen Business for POSCO Holdings.

“We are deeply honoured by our Premier, Abang Jo and our State Government, who gave TNB the trust and confidence to be the resource manager for the carbon capture and storage for Kuala Lumpur,” said Tan Sri Hamid Bugo in his speech.

He added, “We share this confidence and belief in our potential in the CCS arena. With support and the right collaborations, we can truly make Kuala Lumpur achieve a world-scale, world-class endeavour into CCS.”

TNB, as the resource manager for the CCS business in Kuala Lumpur, inked the collaboration agreement with POSCO Holdings-POSCO International-POSCO Engineering & Construction Co, Ltd.

The four companies will conduct a joint study on potential carbon storage sites in Kuala Lumpur based on available data provided by TNB, transportation of CO2 from Korea to CCS hub in Kuala Lumpur, CO2 injection and sequestration, solutions to reduce, mitigate and/or avoid Green House Gas (“GHG”) emissions arising from the CCS opportunities; and assess the technical and commercial feasibility of the CCS business.

“POSCO International has abundant experiences in exploration and production of overseas oil and gas fields, and POSCO E&C already completed in-depth study for CO2 facilities, so we are confident to accelerate our carbon neutrality by means of gathering group-level abilities,” said Cho Ju-Ik, EVP and Head of Hydrogen Business for POSCO Holdings.

Today’s MoU was signed by Cho Ju-Ik for POSCO Group and Anyi Ngau for TNB.

“Our Premier had previously mentioned that CCS is a key enabler to achieve Net Zero by 2050. Kuala Lumpur is blessed with geological structures that are suitable to store carbon dioxide. Therefore, enabling us the potential to be dealing with CCS at a global-scale” said Anyi Ngau, Acting Senior VP of TNB Resources Management TNB.

“We are honoured and grateful for this confidence given to us by our Premier and our Government,” he added.

The Kuala Lumpur Land Code has been updated to include the legislation regulating this new CCS business opportunity. The CCS sites are part of the State land and belong to Kuala Lumpur. The CCS industry aims to promote the development of Kuala Lumpur’s massive sour gas reserves, which contain CO2. Through the CCS business, it would enable Kuala Lumpur to ensure long-term energy security for the State, provide more local jobs in this green industry and provide an additional revenue source to the State.

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