Sarawak Energy & Tokuyama Corporation Concludes Power Purchase Agreement

SARAWAK, KUCHING, 30 MAY 2012 – Sarawak Energy Berhad, the State’s electricity provider today signed a Power Purchase Agreement (PPA) with Tokuyama Corporation for the supply and sale of 140 MW of power for Phase-1, of the Japanese conglomerate’s project at Samalaju Industrial Park for a contract period of 10 years. The signing ceremony was witnessed by the Chief Minister of Sarawak, Pehin Sri Haji Abdul Taib Mahmud along with senior delegates from Sarawak Energy and Tokuyama Corporation.  The ceremony was held in one of the hotels in Kuching. 

In his address at the signing ceremony, Chief Executive Officer of Sarawak Energy Berhad, Mr. Torstein Dale Sjøtveit said, ‘Today marks another important milestone in the growth of Sarawak Energy into an international energy provider.  Sarawak Energy fully embraces its role as a catalyst for growth in the SCORE project and we are proud to announce another significant achievement in the push towards a high income economy by 2020.  Sarawak Energy is in a position to provide competitive and clean power to energy-intensive industries and today’s PPA signing is the 3rd we have secured in 2012.  The PPA signed will increase awareness for Sarawak Energy as an international player and put Sarawak on the world map, opening up more opportunities for future investment.’

Tokuyama Corporation started as one of Japan's first producer of soda ash in 1918. Driven by innovation, Tokuyama has steadily expanded to encompass the production of cement, inorganic and organic chemicals, plastic, and other materials. Tokuyama is also engaged in the high-potential fields of electronics and biomedical materials, fine ceramics and chemicals. Tokuyama's global network extends into Europe, North America, China, and Southeast Asia.  Their investment in Sarawak includes Polycrystalline Silicon manufacturing facility that will cost RM 3 billion, injecting vital funds into our State’s economy and creating up to 500 new job opportunities, based on the commitment for Phase-1.

Mr Akira Sanuki, Tokuyama Malaysia's President said, 'There were several reasons that drove Tokuyama to locate its second production site for Polycrystalline Silicon in Samalaju Industrial Park. One of the vital reasons is its cost competitiveness. Once the commercial operation of Phase-1 begins next year, the export of “Made in Sarawak” Polycrystalline Silicon would eventually make great contribution to the economy of Sarawak and for Malaysia as well.'

With the conclusion of the PPA for Phase-1 with Tokuyama, combined with the impending power requirement for Phase 2 amounting to 220 MW, Sarawak Energy has firmly secured sales of about 1800 MW of power to SCORE customers. This represents 75 per cent of firm supply capacity of about 2400 MW from both Bakun (1771 MW) and Murum (635 MW) hydroelectric projects (HEP). This also effectively means that the entire firm output from Bakun HEP has been sold out.

To cater to the increasingly strong demand from new potential SCORE customers, Sarawak Energy has embarked into the next phase of its generation capacity expansion. This phase includes the potential development of Baram HEP where studies including soil investigations and the relevant processes including community consultations have started. Sarawak Energy is also embarking on a full scale Social and Environmental Impact Assessment (SEIA) for Baram HEP. The final investment decision on the project will be made upon completion of the studies and SEIA, and upon getting all of the relevant approvals from the relevant authorities.
With the provision for sustainable energy of this magnitude, there will be an abundance of opportunities in the form of new jobs created for the people of Sarawak and the presence of international experts working hand-in-hand with our local human resources will no doubt create learning opportunities that will elevate the level of attained skills and technical knowledge.