TAWAU GREEN ENERGY SDN BHD

TAWAU GREEN ENERGY SDN BHD
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GEOTHERMAL ENERGY POTENTIAL OF MALAYSIA –
ONLY IN SABAH
Yellow star indicates location of Apas Kiri
Geothermal Project
A volcano Last Active 27000 Years Ago
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Background
• First report on geothermal potential of Tawau was
published in 1962
• Numerous other reports published subsequently
• An MT survey commissioned in 2008-2009 by Jabatan
Mineral & Geosains, and conducted by Universiti Sains
Malaysia & University of Indonesia, suggested a
geothermal energy potential of 67MW
• Tawau Green Energy carried out a detailed geothermal
exploration program from 2011-2014
PROJECT LOCATION
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APAS KIRI GEOTHERMAL MANIFESTATIONS
Travertine Deposit (Conical Spouts)
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APAS KIRI GEOTHERMAL MANIFESTATIONS
Terrace Springs
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Geothermal Exploration Outcomes
Geochemistry
Geophysics
• MT/TDEM
• Gravity
Geology
- Hydrology
- Up/Out Flow Zone
- Type of Fluids
- Reservoir Geometry
- Geological Structure
- Fracture Zone s
- Structures
- Alteration Zone
- Lithology
Geothermal
Conceptual
Model
DRILLING
TARGETS
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LiDAR SURVEY
• Airborne LiDAR (Light Detection and Ranging) survey is a remote
sensing method used to examine the surface of the earth
• It measures the distance by illuminating the target with a laser and
analyzing the reflected light
• The output from this survey is high resolution maps with terrain data
that would support 1m contour mapping
• TGE will utilise LiDAR survey to obtain accurate terrain data for the
design, location and set-out of steam pipes
• For this project, a total of approximately 100 km2 is covered by the
LiDAR survey
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Resource Overview
• The results of the geothermal exploration surveys have confirmed the
existence of an active geothermal system centered on the SE slopes of Mt.
Maria.
• The chemistry of surface springs suggest a deep underlying neutral
chloride fluid rising and outflowing from the SE and South with a deep
temperature of 180 - 200 deg. C
• Initial resource assessment indicates resource can be developed using
binary power plant with approximately 100MW of potential development
capacity.
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Interconnection Facilities & Communication Facilities
(to be handed over to SESB upon completion)
Major Equipment for IFCF
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Power transformer, protection relays system,
132kV transmission line system, DC power
system supply, telecommunication system,
Remote Terminal Unit, energy accounting and
metering equipment, 33kV indoor switchgear,
132kV outdoor equipment & accessories and
etc.
Telecommunication system including extension
work for SCADA Master System at Penampang
State LDC and Wisma SESB respectively.
Transmission Wayleave
Legend:
TMI
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SESB Tawau Main Intake Substation
KLPG SESB Kalumpang Main Intake Substation
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As per SESB policy, TGE to acquire 2-chain
transmission line corridor. However for KLPGTMI sector SESB allowed TGE to utilise their
existing wayleave
Acquisition and valuation process being
facilitated by UPEN, SESB and JTU
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Location Map
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AP1D – Well design
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PROJECT APPROVALS
• SREP Approval from KeTTHA 22 April 2011
• Power System Study approved by Sabah Electricity Sdn. Bhd. (SESB)
August 2011
• Emission Reductions Purchase Agreement (carbon credit offtake) signed
with Perenia Australia on 09 August 2011
• Renewable Energy Power Purchase Agreement (REPPA) with SESB
signed on 29 November 2011 with Commercial Operations Date of 28
May 2016
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Facilitation Fund Agreement for grant of RM 35 million to cover cost of
access road signed with Government of Malaysia and Bank
Pembangunan Malaysia on 25 May 2012.
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PROJECT APPROVALS
• Land Lease Agreement for 50-year tenure signed with Sabah Parks on
17 August 2012
• Occupation Permit for 50 years from Sabah Forestry Department
received 19 November 2012
• Clean Development Mechanism (CDM) final registration with UNFCCC
on 21 Nov 2012
• Conceptual Development Plan (CDP) submitted to Majlis Perbandaran
Tawau (MPT) 8 November 2012
• PAT Report approved by DOE on 5 September 2013
• Incentive Tax Allowance approved by MIDA on 13 September 2013
• Feed-in Tariff approved by Ministry of Energy on 8 November 2013.
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GEOTHERMAL ENERGY’S UNIQUE CHARACTERISTICS
• Relatively high CAPEX (65%) and low OPEX (35%) when compared to
fossil-fuel generated energy
{CAPEX = 35%; OPEX = 65%}
• Baseload generation with Capacity Factor averaging 90%
{Nuclear = 90%; Coal = 71%; Hydro = 35%; Solar = 20%}
• Very small carbon footprint @ 0.09kg CO2/kWh
{Coal=1.13kg;Fuel oils = 0.895kg;Natural Gas = 0.60kg}
• Readily co-exists with natural habitat
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GEOTHERMAL ENERGY IS TRULY GREEN
For a 36MWe electrical generation, this is equivalent to:
56 million tonnes of carbon equivalent eliminated
annually
13.5 trillion trees planted annually
45 million cars off the roads annually
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GEOTHERMAL POWER PLANT PROJECT COMPONENTS
3 Major Components
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Geothermal Exploration & Steamfield Design
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Geological, geophysical & geochemical surveys;
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Exploratory drilling followed by production wells to bring the hot fluid above
ground for steam production.
Power Plant
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2 x 18MW steam turbine generator, with inlet steam produced from geothermal
source via binary technology.
Interconnection Design / Transmission Lines & Substations
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The power plant will be connected to the SESB Grid through the new Andrassy
132kV/33kV Main Intake Substation, via 132kV interconnection to Tawau Main
Intake Substation and Kalumpang Main Intake Substation.
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PROJECT IMPACTS
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Baseload generation source for SESB Grid
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High availability and reliability of the power plant
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“Fuel” cost not subject to market forces, and “fuel” availability not
subject to demand and supply
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Introduction of new production (steamfield) and generation
(geothermal binary) technologies to Malaysia
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Transfer of technology and production of pool of local expertise
specific to geothermal exploration and geothermal power production
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Catalyst for the local economy through providing job opportunities
and support services
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Issues and Challenges
 Public perception
 Financing
 Feed-in-Tariff (FIT)
 Local expertise
 Site conditions
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Public perception
 Malaysia’s first ever geothermal power project
 Stakeholders not familiar with technology
 Environmental impact misconceptions
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Financing
 Local funders cautious and apprehensive
 No previous experience in funding projects with high risk in
initial phase (exploration risk)
 Financing costs often similar to large conventional power
projects, thus tending to be disproportionate for relatively
smaller geothermal projects
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Financing
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Commercial financing barriers resulting from the high upfront costs of geothermal power projects
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Financiers tend to view project on same basis as
conventional or other renewable energy projects, thus
not giving due consideration to the unique characteristics
of the development of geothermal power projects
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Pre-resource confirmation costs solely funded by
shareholders
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Feed-in-Tariff
 Geothermal was not originally included under Malaysia’s
Renewable Energy Act 2011
 Although FITs for other renewables e.g. biomass, biogas, small
hydro and solar PV, already in force, FIT implementation in
Sabah State was also temporarily suspended due to
administrative issues
 The need to justify why geothermal should qualify for FIT
 Propose and defend a realistic FIT for Apas Kiri geothermal
project
 Geothermal energy finally gazetted as a qualifying technology
under RE Act 2011 on 26.12.2013
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Local expertise
 None available as industry is very new, no one else
developing
 Expatriates form the majority of exploration team
(geologists, geophysicists and geochemists), drilling
engineers and well management team
 Technology transfer program will be put in place to
enable Malaysian staff to eventually manage the project
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Site Conditions
 Steep and mountainous terrain
 No existing access
 Strict land use and land conservation conditions imposed
by Government authorities owning the project area,
contributing to increase in project cost
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THANK YOU
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