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Citaglobal, Abu Dhabi energy giant Masdar to build US$2bil solar farm in Pahang

Citaglobal, Abu Dhabi energy giant Masdar to build US$2bil solar farm in Pahang

01 Dec 2023

Citaglobal Bhd and TIZA Global Sdn Bhd have entered into a 40:60 joint development agreement (JDA) with clean energy company Abu Dhabi Future Energy Company PJSC (Masdar) to build a US$2 billion (RM9.75 billion) two-gigawatt (2GW) solar farm in Pahang.

According to Citaglobal, the project will involve the construction of ground-mounted solar arrays, floating solar farms and battery energy storage systems (BESS) across multiple sites in suitable land, dams, lakes and offshore perimeters across Pahang. 

It will be developed in multiple phases, over five years.

The project forms part of the 10GW for which a Memorandum of Understanding (MoU) was signed between Masdar and the Malaysian Investment Development Authority (MIDA) on Oct 9. 

As part of the MoU, Masdar formed a strategic partnership with MIDA and committed to the implementation of 10GW of clean energy projects in Malaysia with a total investment of US$8 billion.

Being at the most advanced stage of the JDA, Citaglobal expects to be one of the earliest to initiate such project in Pahang.

At this stage, Citaglobal and TIZA will hold a 40 per cent stake in the project, with the remaining 60 per cent held by Masdar. 

Each participating entity will be responsible for funding its respective share of the project development cost. 

The initial development cost of the project will be determined at a later date.

Citaglobal will fund the subscription of its portion of the initial share capital through proceeds from its private placement exercise completed earlier, or internally generated funds.

Citaglobal executive chairman and president Tan Sri Mohamad Norza Zakaria said together with Masdar,  the company is confident of making faster progress towards its climate targets, besides meeting Malaysia’s long-term energy requirements in a responsible and cost-efficient manner.

“To the state of Pahang, the benefits from this project will significantly outweigh its cost. 

“Besides the obvious economic multiplier effect, the livelihoods of the people of Pahang will be greatly enhanced via social innovations and environmental protection.

“This is similar to how Masdar aims to power 50,000 homes and offset 214,000 tonnes of carbon dioxide emissions from its first floating photovoltaic project in Cirata, West Java in Indonesia,” he said. 

Masdar chief executive officer Mohamed Jameel Al Ramahi said the company is very proud to be strengthening its support for Malaysia’s renewable energy ambitions with this partnership. 

“As a clean energy pioneer with over 17 years’ experience in deploying renewable and clean energy projects at scale, we look forward to helping build Malaysia’s renewable energy capacity with this agreement in support of its net-zero targets,” he added. 

Citaglobal and Masdar had signed an MoU that served as an initial agreement to jointly develop clean energy projects in Pahang.

Source: NST