Discontinued
Operations
As responsible corporate citizens, the Management of MFCB recognises that it is crucial to take steps to protect our planet from further degradation and preserve the earth’s resources for the future generations.
As far back as the mid-2000s, the Management took the first step toward transforming the Group’s highest income-generating power division by shifting away from non-clean energy to renewable energy. Having started the feasibility study of the Don Sahong Hydropower Project in 2006, the Group eventually signed the Power Purchase Agreement with Electricite Du Laos in 2015. When the agreements to operate the Shaoxing and Tawau plants were due for renewal in 2017, the Management made the bold decision not to seek extensions, as these two plants utilised pollutive, high-carbon-emission fuels that were not aligned with the Group’s long term aspirations.
Shaoxing Power Plant,
China
Shaoxing Mega Heat & Power Co., Ltd (“SMHP”) was a 60%:40% sino-foreign co-operative joint venture formed on 15 October 1996 between Mega First Power Industries Sdn Bhd, a wholly-owned subsidiary of MFCB, and Qixian Heat & Power Co., Ltd of the People’s Republic of China. Under the joint venture agreement, SMHP had the right to operate the coal-fired heat and power plant located in Shaoxing City, Zhejiang Province, PRC, for a period of 22 years until 22 October 2017.
The power plant generated both heating and electric power. It had an installed capacity of 83MW with a steam supply capacity of 520 tonnes per hour. Steam was supplied to the neighbouring factories while electricity was transmitted and sold to the Power Bureau through the local grid. Steam sales contributed approximately 2/3 of sales while the remaining 1/3 came from energy sales.
The joint venture’s term was not extended by both parties upon expiration.
Tawau Power Plant,
Malaysia
MFCB Group owns 51% of Serudong Power Sdn Bhd (“SPSB”).
SPSB builds, owns, and operates a 36MW diesel-fuelled power plant in Tawau, Sabah. SPSB was licensed to exclusively supply electricity to Sabah Electricity Sdn Bhd for a 21-year concession period starting from 2 December 1996.
SPSB’s power plant consists of 3 identical blocks of medium-speed generating sets, primarily fuelled by medium fuel oil procured from Petronas Dagangan Berhad, as part of a 21-year Fuel Supply Agreement. Wartsila NSD Corporation of Switzerland designed the power plant’s 4-stroke engines, while Hyundai Heavy Industries Co., Ltd and Hyundai Corporation Ltd were the licensed manufacturers.
Mega First Power Services Sdn Bhd, a wholly-owned subsidiary of MFCB Group, was responsible for the operation and maintenance of the power plant via an Operation and Maintenance Agreement for a period of 12 years starting from 2 December 1996, which was subsequently extended to 1 December 2017.
SPSB was subsequently divested on 30 May 2023.