GREEN

TECHNOLOGY

INITIATIVE

INDUSTRY PERSPECTIVE

ON CARBON INTENSITY

REDUCTION

1

17th November 2011

Overview of Malakoff

Leading and largest IPP in Malaysia with

generation capacity of over 5020MW;

25% market share in Malaysia;

Core businesses: Power generation,

water desalination, power plant O&M

services, electricity distribution, project

management;

Holds interests in projects in MENA

region;

Staff strength > 700; more than one third

engineers;

Privatized in 2007 by major shareholder

MMC Corporation Berhad.

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Our Key Strengths

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1. Leading IPP in Malaysia with strong

track record.

Premier power generation company

in Malaysia.

International-standard Long-term

PPAs and high credit quality

counterparties.

Established management team with

unparalleled expertise in

development and operations.

Strong, local Shareholder Group

committed to tap growth

opportunities.

Our Key Strengths

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2. Positioned to Leverage on Growth

Opportunities

Strong outlook for power and water

demand in key markets.

Upside potential from existing and

identified new projects.

Solid capital structure to fund

growth opportunities.

Active pursuit of renewable energy

projects (solar, biogas, wind).

Malaysian Portfolio

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Malaysian Portfolio

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Port Dickson Power Station

(25%)

440 MW

Open cycle gas turbine

(peaking plant)

Kapar Power Station (40%)

2,420 MW

Coal, oil and gas-fired

(baseload and peaking plant)

GB3 Power Plant (75%)

640 MW

Combined cycle gas turbine

(baseload plant)

Prai Power Plant (100%)

350 MW

Combined cycle gas turbine

(baseload plant)

Lumut Power Plant

(93.75%)

1,303 MW

Combined cycle gas turbine

(baseload plant)

Tanjung Bin Power Plant

(90%)

2,100 MW

Coal-fired

(baseload plant)

International Portfolio

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International Portfolio (Power & Water)

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Leveraging existing experience from

developing and acquiring assets in

Malaysia.

Focus on Power and Water Concessions as

an Equity Investor and/or O&M Operator

in the Middle East, North Africa and South

Asia.

To date, equity ownership of over 330 MW

and 194,000 m3/day.

O&M services to Shuaibah Phase III IWPP

in Saudi Arabia with capacity of 900MW &

800,000 m3/day.

O&M services (together with Hyflux) for

200,000 m3/day water desalination plant

in Algeria.

Operation & Maintenance

Services

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Teknik Janakuasa Sdn Bhd (TJSB)

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Malakoff operates and maintains its own power plant through its wholly owned

O&M arm, Teknik Janakuasa Sdn Bhd (TJSB).

O&M Services include :

O&M Training Services and Technical Support

Supply of O&M Specialists

Implementation of O&M tools and methodologies

Project Engineer

Owner’s Engineer

Technical Due Diligence

Project Development and Design Review

O&M Portfolio

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MALAKOFF CARBON FOOTPRINT

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Carbon Footprint

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To be more economically, socially &

environmentally sustainable company

& to play an active role in combating

climate change

Carbon Risk Management

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Potential business risk for IPP business to be

imposed on carbon emission or carbon tax.

Requirement for Renewable Portfolio Standard

(RPS) – a possibility

Low carbon footprint utilities might be

preferred to keep a limited burden to the end

user.

Basis of Carbon Footprint Calculation

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Methodology : Green House Gas Protocol

Fuel

Consumption

Convert using emission factor

GHG emissions:

CO2, CH4, N20, SF6,

HFC

CO2

equivalent

(tonne CO2e)

MCB Carbon Emission Factor vs Peninsular Grid Emission Factor

Comparing the Carbon Emission Factor (CEF) value,

2009

2010

0.713 tCO2/MWh

0.794 tCO2/MWh

How to manage Carbon

Emission factor issue???

MCB’s 3 year average 0.741 tCO2/MWh

Peninsular Grid Emission factor 0.672 tCO2/MWh

3 options

CO2 reduction

- IGCC

- CO2 capture (CCS)

- Cofiring

CO2 offset

- Carbon Credit

- Carbon Sink

CO2 avoidance

- Development of RE plant

Ways to address the Carbon Emission Factor Issue

How Does RE plays its

Role in reducing MCB’s

Carbon Emission

Factor??

Target to achieve 300MW of renewable energy

capacity @ 80% CF by 2020 1.4 mil. tCO2/yr

CO2

avoidance MCB’s Average CEF for 3 years: 0.74 t CO2/MWh

MCB’s total generating capacity: 23 mil. MWH/yr

MCB’s total tonnes of CO2e : 17.4mil. tCO2/yr

Malakoff (MCB) RE Target

Deductable

16mil. tCO2/yr

(0.68 tCO2/MWh)

Reduction with 300MW RE **

** assuming no new increase

In power generation capacity.

Green Technology Initiative

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Green Technology Initiative

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Established in 2010

Explore business opportunities in

Green Technology & Renewable

Energy (RE) sector in support of the

National Renewable Energy target.

To play a more prominent role

towards leading development

activities in RE sector in supporting

Government Green Technology

roadmap

Long term goal is to establish a

comprehensive portfolio of RE

investment both locally and

internationally.

Target to achieve 300MW by 2020.

Current On-Going Initiative on RE

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BIOMASS

Biomass plant using EFB as feed

stock – 8MW

BIOGAS

Bio-gas plant using animal waste as

feedstock – 1MW

Bio-gas plant, Co-digestion feed

stock, Sewage & MSW organics –

pilot

WASTE MANAGEMENT

Waste to Energy (WtE) Plant –

14MW

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■ Malakoff to develop a co-digestion bio-gas plant

utilizing the sewage sludge from STP & MSW organics.

• Target generation output of 2MW @ 50 tpd input.

• Malakoff to build pilot scale plant. Upon success,

Malakoff intends to invest on a commercial plant.

■ Current project status:

• Research collaboration with Universiti Putra

Malaysia (UPM) to develop pilot plant. Bulk funding

from Malakoff.

• 12 months timeline for research period.

Bio-Gas from Co-Digestion

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■ Identified a potential site in Johor for 600tpd WtE plant

■ Universiti Teknologi Malaysia (UTM) was engaged to conduct the

feasibility study which completed in November 2011.

■ The feasibility study scope includes

• collection of local data on waste generation, forecast of

growth and composition

• Waste characterisation for fresh and landfill waste.

• Steam and energy demand requirement for Tanjung Langsat

industrial area.

Results shows it’s technically viable to built WtE plant in the area

Waste to Energy (WtE) initiative

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■ Built, Own, Operate, Transfer (PPP Concept) a Sustainable

Integrated Solid Waste Management (ISWM) thermal treatment

plant.

■ Gross Power generation 14MW; 600 tonne per day MSW

processing

■ Maximizing project benefit in areas of ;

Environmental quality

Saving natural resources: materials, energy and land (via

landfill mining).

New landfill avoidance cost

Waste Risk Management and Mitigation Plan.

Waste to Energy (WtE) – OUR TARGET

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■ Malakoff experience and proven track record as power

plant developer for both local and overseas project.

■ Malakoff proven track record in managing and executing

large scale infrastructure projects.

■ Malakoff proven track record in large infrastructural

project financing.

■ Our proven track record in plant operation and

maintenance.

■ Malakoff strategic thrust in establishing green

infrastructural project.

■ Malakoff CSR commitment in Environment, Community

Services.

Malakoff Co2 reduction initiative - summary

Thank You

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Rosli Abdul Hamid

VP – Green Technology Initiative

MALAKOFF CORPORATION BERHAD

Level 12, Block 3B, Plaza Sentral

Jalan Stesen Sentral 5

50470 Kuala Lumpur

Malaysia.

http://www.malakoff.com.my