Chemical Company of Malaysia Berhad Sustainability Report 2019

Mitigating Additional Energy costs via COGEN Co-generation (COGEN) or Combined Heat and Power involves the simultaneous production of electricity and usable thermal energy from a single fuel source which is substantially more efficient and cost effective. The heat created from COGEN is captured and recycled to provide hot water or steam for heating or cooling a production facility. To mitigate additional energy costs, we initiated a COGEN project at our Pasir Gudang Work (PGW) chlor-alkali plant in Johor in FY 2019. Targeted for completion by end FY 2020, the project involves an investment of RM27.9 million and the integration of a 7.8 MW COGEN capability into our stable of assets. Aside from providing considerable energy savings to the Group, it aims to mitigate the Group’s exposure to any increase in electricity rate, strengthening our cost competitiveness, and simultaneously supporting the national agenda of achieving 8% savings from energy efficiency by 2025. The COGEN project also aims to lower greenhouse gas emissions such as carbon dioxide and other air pollutants like nitrogen oxides and sulphur dioxide, thus resulting in a cleaner environment. Energy Reduction through Electrolyser and Membrane Efficiency For some years now, we have been reaping the benefits of energy reduction through electrolyser and membrane efficiency at the PGW 1 plant. One such project involved upgrading the electrolyser from an NCS electrolyser to an NCH electrolyser. By using the NCH electrolyser, it has led to significant reduction in power consumption and hence carbon emissions. The project, which began in 2014 and was fully completed in 2016, focused on the augmentation of electrolyser technology by optimising membrane performance. Tapping Excess Hydrogen via the Dual-Fuel Boiler Project Hydrogen gas is one of the gasses produced in the chlor-alkali manufacturing process. Apart from using it to produce hydrochloric acid, there is usually excess hydrogen in the manufacturing process that is released into the atmosphere. PGW has embarked on a dual-fuel boiler project by utilising excess hydrogen as an alternative fuel source for boiler operations instead of using natural gas alone. In tapping this approach, the natural gas consumption for the boiler fuel source has been reduced by 26% in 2019. By consuming the excess hydrogen from our plants as fuel instead of just emitting it into the atmosphere, we have successfully helped reduced energy costs and the Group’s carbon footprint. To keep track of our emissions, we conduct air emissions monitoring of our plants and generator sets. These activities, which encompass ambient air, stack and scrubber monitoring, all comply with the requirements set by the Department of Environment Malaysia (DOE). 41 SUSTAINABILITY REPORT 2019