Industry
Oleochemical
Product
GPB80D Gas Turbine
Details
- 6.5 MW
- 33 TPH Steam
Est. Annual CO2 Reduction
22,600 ton-CO2/year
Est. Annual Cost Savings
RM 8 million
Location
Prai, Penang
Project Description
This customer is the first industrial Cogen project for SDES. The main driver for these initiatives is to reduce utilities costs and reduce carbon emissions. This project utilizes Kawasaki M7A GPB80D gas turbine model to reach a required target of 6.5 MW of power for plant operations and is equipped with a Heat Recovery Steam Generator (HRSG) with added supplementary firing which is capable of producing 33 tph of steam alongside a hot standby package boiler as backup.
The project was successfully commissioned in 2015 and since then, this customer managed to acquire savings of RM 600,000 to RM 700,000 monthly. By applying cogeneration solution, this customer was eligible for Malaysia’s tax incentive under Green Investment Tax Allowance (GITA) program which was introduced by the Malaysian Government in efforts to promote green technology as one of the nation’s future economies. During implementation, the payback period for this project was calculated to be around 4 years but with GITA claimed, it has substantially reduced to around 3 years.
Cogeneration solution has proven to be a greener option with an estimated 22% in reduction of CO2 emissions as compared to the conventional grid for power generation. Due to the success of this project, the customer has replicated the same initiatives in their other plant in Pasir Gudang in 2019 and expansion of current plant in 2023.