Boustead partners PowerChina unit to explore renewable energy, construction opportunities - MIDA | Malaysian Investment Development Authority
contrastBtngrayscaleBtn oku-icon


plusBtn crossBtn minusBtn


This site
is mobile


Boustead partners PowerChina unit to explore renewable energy, construction opportunities

Boustead partners PowerChina unit to explore renewable energy, construction opportunities

18 Nov 2021

Boustead Holdings Bhd has signed a memorandum of understanding (MoU) with a unit of Power Co Corp of China (PowerChina), to explore collaborations in renewable energy (RE) projects and other civil engineering and construction projects.

The MoU was inked between Boustead and Sinohydro Bureau 9 Co Ltd International Co, a wholly-owned subsidiary of PowerChina, on Thursday.

Among the terms of the MoU, the parties seek opportunities to develop land-based solar farm in Boustead’s land, and floating solar photovoltaic (PV) projects through Boustead’s participation in large-scale solar (LSS) projects with Sinohydro as an engineering, procurement and construction (EPC) contractor.

The parties are also exploring rooftop solar business for which Boustead will act as the energy supplier while Sinohydro will act as a project financing partner and EPC contractor.

Boustead also intends to explore solar PV manufacturing with Sinohydro acting as strategic technology and marketing partner. The parties also intend to jointly explore solar battery storage solutions and the development of waste-to-energy plant.

“In addition, Boustead Group will explore and propose to Sinohydro other projects including but not limited to water irrigation and conservation, railway (and subway), road, airport, housing construction, water environment treatment, urban infrastructure construction, and large-scale civil engineering and construction projects,” Boustead said in a statement.

According to Boustead, Sinohydro is the key international brand and flagship business of PowerChina, which itself is a market leader in engineering and construction projects and is also the driving force behind PRC’s industrial development.

Boustead group managing director Datuk Seri Mohammed Shazalli Ramly said the partnership with Sinohydro aims to significantly explore the country’s current available RE resources.

“With our commitment to RE for a greener future, we have created Boustead Hijau Agenda, or BIJAU, which represents our strong green initiatives that are able to fortify environmental, social and governance (ESG) efforts to safeguard sustainable growth.

“In line with our Reinventing Strategy as well as our commitment to becoming the nation’s leading green technology player, Boustead has the infrastructure to explore and consider solar farming (land, water and air), solar panel manufacturing, solar energy use case and accessibility and other new innovative opportunities,” Shazalli said.

“Looking forward, we have identified the potential of concentrated solar power (CSP) in the form of microturbine solar power systems where we envision the use of this technology in supplying energy needs for domestic and commercial applications,” he added.

Shazalli added that Boustead’s potential commencement towards this RE technology and energy saving exercise is envisaged with firstly a pilot project at its own properties.

Sinohydro general manager Liu Zhi Yong said that the partnership with Boustead is an example of the ongoing and positive relations between China and Malaysia.

“This MoU ceremony signifies the mutual trust between our two countries and as Sinohydro has a strong presence in the construction and engineering industry in the People’s Republic of China while continuously setting the bar on innovation and technological improvement in various sectors of the business, we look forward to working with Boustead in strong cooperation and support,” he said.

Shares of Boustead traded down one sen or 1.75% to 56 sen, giving it a market capitalisation of RM1.14 billion.

Source: The Edge Markets