Coal

Coal is type fossil fuel and is naturally produced similar to way petroleum is. One exits as a solid, another as liquid. The most common types of coal used in Malaysia are bituminous and sub-bituminous.

History

Policy & Act

Policy & Act

Acts

 -> Mineral Development Act 525 (1994)

Policy

 -> Fuel Diversification Policy (1981)

To prevent over-dependence on oil as the primary energy resource, the initiative focused on four primary energy resources - oil, gas, hydropower, and coal - and introduced coal into the electricity generation mix.

 -> National Energy Transition Roadmap (2023)

Close to fully phased-out coal from the power generation mix by 2050.

Framework

Ministry of Energy Transition and Water Transformation (PETRA)

Responsible for formulating policies, regulations, and strategies related to the energy sector including coal.

Ministry of Natural Resources and Environmental Sustainability (NRES)

⁠NRES ensuring the sustainable development & environmental of Malaysia natural resources and oversees the enforcement of environmental regulations.

Energy Commission (Suruhanjaya Tenaga)

Plays a role in licensing, monitoring, and ensuring compliance with regulations for coal-fired power plants.

Department of Minerals and Geoscience Malaysia (JMG)

Responsible for formulating policies, regulations, and strategies related to the energy sector including coal.

TNB Fuel Services Sdn Bhd (TNBF)

TNBF is a subsidiary of Tenaga Nasional Berhad (TNB) and oversees the entire coal supply chain, from sourcing and transportation to storage and delivery to TNB power plants that utilize coal for electricity generation.

Supply Chain

Mining

In Malaysia, coal mining activities primarily takes place in the state of Sarawak. Coal is extracted from mines through various methods including open-pit mining and underground mining.

Import

Malaysia imports a significant portion of its coal with Indonesia being one of the major suppliers. Importation involves the procurement of coal from Indonesian suppliers either through direct contract or via traders and intermediaries. Indonesia one of the largest coal exporters globally and supplies a significant portion of Malaysia’s coal imports due to its proximity, abundance of coal reserves, and competitive pricing.

Transportation

Once coal is mined or imported, it needs to be transported to distribution centers or directly to end-users. Transportation methods can be rail, road, and sea transport but mostly coal is imported by ship due to the large quantities involved. All coal transportation to the power stations from the supplier’s Loading Port and major ports in Peninsular Malaysia facilitate the importation and distribution of coal.

Distribution & Consumption

A paragraph is a self-contained unit of a discourse in writing dealing with a particular point or idea. Paragraphs are usually an expected part of formal writing, used to organize longer prose.

Coal is distributed to various end-users including power plants, industrial sectors such as cement manufacturing and iron & steel production.

Coal Power Plant in Malaysia





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