Malakoff, DRB-Hicom ink 6 new SPPAs on solar energy - MIDA | Malaysian Investment Development Authority
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Malakoff, DRB-Hicom ink 6 new SPPAs on solar energy

Malakoff, DRB-Hicom ink 6 new SPPAs on solar energy

14 Jul 2021

The solar facilities will be installed under a build-own-operate-transfer contract as part of a 25-year deal

Malakoff Corp Bhd, via its subsidiary, Malakoff Radiance Sdn Bhd, has signed six solar power purchase agreements (SPPAs) for the development of rooftop solar energy systems with manufacturing and engineering companies under the DRB-Hicom Group.

The DRB-Hicom units involved are CTRM Aero Composites Sdn Bhd, Hicom Automotive Manufacturers (M) Sdn Bhd, Isuzu Hicom (M) Sdn Bhd, Hicom TeckSee Manufacturing Sdn Bhd, Hicom Bhd and Motosikal dan Enjin Nasional Sdn Bhd (Modenas).

The independent water and power producer stated the solar facilities will be installed under a build-own-operatetransfer contract as part of a 25-year SPPAs.

Upon completion, these facilities are expected to generate 18,836 megawatt hour (MWh) of clean electricity per annum, which will collectively neutralise about 13,072 tonnes of carbon emissions per year from the manufacturing industry, the group said.

Malakoff MD and CEO Anwar Syahrin Abdul Ajib said the new projects demonstrate the group’s commitment to expand its renewable energy (RE) generation portfolio.

“We have the capacity and capability to further embark on collaboration and ventures with any business entity for rooftop solar systems.

“I am optimistic about the growth in the rooftop solar segment that we are experiencing now given the drive by many businesses to tackle the global issue of climate change,” Anwar Syahrin said in a statement yesterday.

He is confident Malakoff is on the right track to capture new growth opportunities in the RE sector.

Malakoff noted CTRM Aero Composites has a solar capacity of 5,152 kilowatt peak (kWp), Hicom Automotive Manufacturers (2,000 kWp), Isuzu Hicom (2,000 kWp), Hicom Teck-See (2,000 kWp), Hicom (1,004 kWp) and Modenas (1,249 kWp).

As a leading player in the power and waste management sector, Anwar Syahrin said Malakoff’s clients and partners trust its ability to help them achieve their agenda on tackling carbon emissions.

He said the group is looking forward to achieving its long-term goal of being a sustainable clean energy solutions provider, while giving value-added services to its clients in realising cost savings and enhancing efficiency in their operations.

“This is a great opportunity for all parties to contribute towards the country’s transition to a clean energy future. Malakoff itself is undertaking a transformation towards decarbonisation by 2050,” he added.

He said these types of projects would provide building blocks for the group to achieve carbon neutrality and eventually net-zero carbon emissions by 2050.

Malakoff’s quest for RE expansion is in-line with the Malaysian government’s aim of meeting the RE capacity mix target of 31% by 2025.

Recently, Malakoff secured other rooftop solar projects with the country’s largest mall operator, AEON Co (M) Bhd and renowned logistics industry players such as Northport (M) Bhd, Johor Port Bhd and Pos Malaysia Bhd.

It said all these projects have a combined total capacity of 25,444 kWp, will generate 33,243 MWh per annum and neutralise 23,070 tonnes of carbon emissions per year.

The company said these projects are part of its transformation agenda which are aligned with the United Nations 17 Sustainable Development Goals.

Malakoff shares closed unchanged at 82 sen yesterday, valuing the company RM4.05 billion.

Source: Malaysian Reserve