Tawau Green Energy has signed two separate memoranda of understanding that will help it to develop a geothermal power project in Malaysia.
The 36 MW plant will be Malaysia's first geothermal facility and is due to start operating in 2016. Tawau has signed agreements with University Malaysia Sabah (UMS) and Atlas Copco.
The agreement with UMS will enable the university to use Tawau's project site at Apas Kiri, Sabah, for undertaking research in geology, geophysics and other related studies, while the agreement with Atlas Copco will enable technical collaboration to aid the introduction of new renewable technologies in Malaysia.
"The insights gained from this research are expected to boost capacity building in this field as well as facilitate the future development of geothermal resources in the country. This will be especially critical for the exploration of geothermal potential in the Tawau-Semporna peninsula," said Malaysia's Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili.
Site preparation works at the site started in 2013. The output from the plant will be sold to Sabah Electricity (SESB) under a 21-year renewable energy power purchase agreement signed in 2011.
In 2012 the project received final approval and registration under the UNFCCC's Clean Development Mechanism.