A. Project Context
Sponsor
CEO, SPG
Manager
Plant Engineering Manager
Participating Organisations
Southern Power Generation Sdn Bhd, Group Sustainability
Asset / Location
Selatan Coal Power Station
Reason for Action
Reduce Scope 1 emissions intensity and manage transition risk ahead of tightening carbon regulation
B. Baseline
Current Situation
Two 500MW units operating at current heat rate of 9,800 kJ/kWh, no carbon capture
Baseline Date
2025-01-01
Baseline Metrics
Heat rate, Scope 1 emissions, capacity factor
Data Quality
measured
Counterfactual
Without intervention, emissions intensity remains flat while carbon price exposure increases
C. Objectives
Intended Change
Reduce heat rate by 4% and Scope 1 intensity by 8% through combustion optimisation and boiler upgrades
Target
Heat rate 9,400 kJ/kWh; Scope 1 intensity -8%
Target Date
2027-12-31
Affected Stakeholders
Plant workforce, Pasir Gudang community, grid customers
Expected Benefits
Reduced fuel cost, reduced emissions, reduced regulatory exposure
D. Options
Alternatives Considered
Full fuel switch to gas (rejected - grid stability risk), carbon capture retrofit (rejected - cost prohibitive at this stage), combustion optimisation (selected)
Do-Nothing Case
Continue current operations with rising carbon cost exposure and no efficiency gain
Reason Selected
Combustion optimisation offers best near-term risk-adjusted return while transition strategy is developed
E. Cross-Pillar Effects Review Reviewed
Could solving this problem create a different environmental, social or governance problem?
Potential Trade-offs / Unintended Consequences
Improved efficiency could extend asset life, potentially delaying broader decarbonisation transition - to be monitored against group net-zero pathway
F. Safeguards
Rights & Stakeholder Impacts
No adverse rights impacts identified
Environmental Impacts
Reduced local air pollutant emissions as co-benefit
Community Impacts
Improved community air quality perception
Mitigation Measures
Continuous emissions monitoring maintained throughout
Grievance Requirements
Community grievance channel remains open
G. Business Case
Capital Cost
RM 45,000,000
Operating Cost
RM 3,200,000
Savings
RM 5,100,000
Revenue
—
Avoided Cost
RM 8,500,000
Funding Source
Group capital allocation
Risk Reduction
Reduces transition and regulatory risk exposure
Strategic Value
Supports Group net-zero pathway and licence to operate
H, I, J. Measurement, Evidence & Governance
See linked Metrics, Evidence, Stage Gates and Governance in the Project Workspace tab.
Go to Project Workspace