Cogeneration Project - Benefits (Part 1)

Cogeneration (Cogen), or Combined Heat and Power (CHP) is an enormous and growing market in Malaysia for the past few years. Based on the statistic produced by the Energy Commission (EC), the number of installed cogeneration unit in Malaysia has been increased from seventeen (17) in 1996 to thirty (30) in 1999, an increase of more than 75% within three years. The concept of cogeneration in Malaysia has been gradually accepted due to the availability of natural gas as the alternative source of energy and the continuous publicities and incentives introduced by the Malaysian Government in promoting the use of a more efficient and environmentally-friendly system.

The principle behind cogeneration is quite simple. Conventional power generation, on average, is only 35% efficient, therefore up to 65% of the energy potential is released as waste heat. More recent combined cycle generation can improve the efficiency to 55%, excluding losses for the transmission and distribution of electricity. Cogeneration reduces this loss by using the readily available heat to generate the steam.

In the context of Petronas Penapisan Melaka Sdn Bhd (PP(M)SB), it has always been the company’s commitment towards pursuing the most efficient and environmentally-friendly refinery. The more efficient the energy utilization, the less fuel is needed to produce the same amount of power and steam required by the refinery. This will contribute to the reduction of the energy cost and ultimately will improve the profitability of the refinery. Having a more environmentally-friendly system will also produce a better environment and a more favorable place to work.

Due to the above reasons, a Cogen Project was initiated, approved and implemented by PP(M)SB.