Malaysia has unveiled plans for its second waste-to-energy (WTE) facility, to be built in Sungai Udang, Melaka state, with an estimated investment of MYR 660 million (USD 141 million). Slated for completion by 2029, the project will be carried out through a public-private partnership involving the Ministry of Housing and Local Government and a consortium comprising Malakoff Corporation Bhd, a major independent power producer, and Alam Flora Environmental Solutions Sdn Bhd, a key player in waste management services.
The plant will adopt the build-own-operate model and utilize stoker grate incineration technology that meets current environmental and technical standards. A second incineration line may be developed in the future, pending new agreement terms. Once operational, the Sungai Udang WTE facility is expected to process up to 1,000 tons of municipal solid waste daily, generate 22 megawatts (MW) of electricity, and reduce approximately 259,000 tons of CO₂ emissions annually, equivalent to planting over four million trees. The 9.8-acre facility will also feature a 96-cubic-meter leachate treatment system and be constructed on the existing Sungai Udang landfill. Construction is slated to begin in 2026, with a three-year timeline, subject to the fulfillment of several preconditions including environmental and social impact assessments, technical approvals, and sustainability plans.
The concession period for the project spans 34 years, inclusive of construction, and will conclude in 2061 with the demolition of the plant. The government has cited the expected rise in solid waste generation, up to 17.03 million metric tons by 2035, as a key driver for advancing WTE infrastructure. The initiative supports Malaysia’s broader goal of achieving 70% renewable energy capacity by 2050, with WTE expected to contribute as much as 600 MW to the national grid. Malaysia’s first WTE facility, located in Ladang Tanah Merah, Port Dickson, became operational in 2023 and processes 800 tons of waste per day, producing 15 MW of electricity.
(Sources: Malay Mail; The Star)
