Malaysia: 30 MW Apas Kiri geothermal project in Malaysia on track to operate in 2019

Malaysia: 30 MW Apas Kiri geothermal project in Malaysia on track to operate
in 2019

Malaysia's first geothermal power plant could start operation as early as
2019, as announced by the developer of the 30 MW Apas Kiri geothermal
project in Sabah, Malaysia.

Reported before the weekend, Tawau Green Energy Sdn Bhd (TGE) has announced
that the company is on track to develop Malaysia's first geothermal power
plant project in Tawau, Sabah, in 2019.

TGE has received all requisite approvals to develop, construct, operate and
maintain a geothermal power plant, exporting 30MW to the Sabah Grid, under a
21-year renewable energy power purchase agreement (PPA) with Sabah
Electricity Sdn Bhd at a feed-in tariff of RM0.45 per kWh.

The approvals included land lease agreements with the Sabah Forestry
Department and Sabah Parks, within whose land the project area is located,
TGE project development GM Andrew Amaladoss told local publication, The
Malaysian Reserve. He said initial studies at the project area indicated a
potential of 67MW.

TGE has since undertaken extensive subsurface studies including geology,
geophysics, geochemistry and LiDAR (light detection and ranging) surveys.

"The outcomes from all these surveys were integrated and analysed by
reputable geothermal consultants to indicate that seven production wells and
four injection wells would be required to support the export capacity of
30MW.

"There is also an indication that the overall potential of the Apas Kiri
geothermal reservoir could exceed 70MW," he said.

Speaking at the recent Power Plant Innovation Summit 2017 in Kuala Lumpur,
Amaladoss said the project cost was estimated at RM670 million with an
expected payback period of eight to nine years.

He told the conference participants, mostly from the power sector, of the
green virtues of the geothermal energy with its small carbon footprint.

The Apas Kiri project would be equivalent to 56 million tonnes of carbon
equivalent eliminated annually, 13.5 million trees planted annually and 45
million cars taken off the roads annually, he said.

The other "unique characteristics" of geothermal energy were high capital
but low ope- rational expenditure, baseload electricity generation with
capacity factors in excess of 90%, and low downtime during operation,
typically a week annually.

On the flip side, he said the challenges faced by TGE in developing the
project included the stakeholders not being conversant with the development
process of geothermal energy, high upfront capital outlay and risk, and
difficulty in obtaining financing from local lenders.

The project, expected to be completed in 2019, will provide green energy to
Sabah's East Coast, which currently is about 70% diesel-based.

"The project will also be a catalyst for economic activities in the Tawau
district," he said.

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Link to Original Article:
http://www.thinkgeoenergy.com/30-mw-apas-kiri-geothermal-project-in-malaysia
-on-track-to-operate-in-2019/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com