Manjung Coal-Fired Power Plant, Perak, Malaysia
The Manjung coal-fired power plant, sponsored by Tenaga Janamanjung, is located on a man-made island off the coast of Perak in Malaysia. It generates 2,100MW from its three 700MW units.
The plant is located 4.5m above sea level, making coal imports easier. Construction began in September 1999 and the three 700MW units became operational in 2004.
The project suffered some delay as a result of the 1997/98 Asian economic crisis. It was completed at a cost of about $1.8bn.
The plant was built to meet the 80% electricity demand of Malaysia on natural gas. The three 700MW units, with a rotating speed of 3,000rpm, use clean coal combustion technology and environmental control systems provided by Alstom to cut down emission levels.
Manjung coal-fired power plant make-up
The island on which the site is located is off the coast of Perak. The land was reclaimed between September 1997 and May 1999, which meant ABB could start construction in July 1999.
A consortium formed by ABB Alstom Power Plants and Peremba Construction was selected as the engineering, procurement and construction (EPC) contractor for the project. ABB Alstom owns 75%, while the Malaysian Peremba owns the rest.
Lekir Bulk Terminal (LBT) built a terminal to offload the six million tons of coal the plant should use each year. The jetty serves vessels of as much as 150,000t. The plant was built on 254ha of the total 320ha of reclaimed land on the island. Of the 254ha, 70ha was for the power plant and 175ha for the ash pond. The rest was used for the terminal facilities.
Leighton Asia designed and constructed the jetty, which was completed in September 2002. The estimated cost was RM310 million (€93m).
ABB Alstom Power supplied the main equipment. It included the boilers, steam turbines and generators. Peremba was concerned with the erection, the civil works elements and the main electrical and I&C equipment.
The plant's transmission link to the Malaysian mainland was provided by ABB. Bachy Soletanche Malaysia designed an alternative construction for the pump house, as the original design proved too costly (the design was greatly complicated by the geology of the site). The coal yard equipment was supplied by Koch.
Project finances, bank loans and TNB's agreement with the state of Perak
The plant's cost was eventually estimated at $1.8bn, up from the original estimate of $1.3bn. The main reason was the adverse change in the exchange rate. Roughly 30% of the cost came from equity financing.
The rest came from various forms of borrowing, including export credit. A major element in the deal was a $684m loan from HSBC's Midland Bank subsidiary. The HSBC loan was underwritten by the UK's export credit guarantee agency. The French export credit insurer COFACE was also involved.
Tenaga Nasional Berhad's subsidiary, TNB Janamanjung, was originally the sole owner of the plant. In August 1999, the Perak state government announced it would take a 20% stake. TNB was happy with the proposal as the company had a long-term strategy of reducing its power generation exposure to focus on transmission and distribution.
Pollution issues for Tenaga Janamanjung's Malaysian facility
The plant uses low sulphur and low bitumen coal (pulverised for burning) to minimise pollution. The resulting ash is valuable for the cement industry, while most of the ash is caught by electrostatic precipitators. Dust control is also an important feature (the conveyor belt is covered and sprinkler systems remove up to 99.9%).
The plant has a wastewater treatment facility to treat its effluent before it is released into the sea. The plant also helps in reinvigorating decayed mangrove swamps in the area.
The plant exceeds the emission standards set by the World Bank in Malaysia. It operates to particulate levels of 50mg/Nm³ while the expected ASEAN level is 400mg/Nm³. It uses low NOx burners and a flue gas desulpherisation facility, to keep NOx and SOx emissions low.