Federal International partners with China’s SPIC to venture into the RE sector
24 Sep 2021
Federal International Holdings Bhd (FIHB) will partner with China’s State Power Investment Corporation (SPIC) in its first venture into the renewable energy (RE) business.
On 21 September 2021, FIHB collaborated with a group of green-tech entrepreneurs and a multinational company to form Warrants RE Assets Sdn Bhd (WREA), whereby FIHB holds a 50 per cent stake in the entity.
The purpose of WREA is to invest in greenfield and brownfield renewable energy projects in Malaysia.
FIHB executive director Datuk Choy Wai Ceong said this collaboration marks its first venture into the renewable energy segment and is proud to have SPIC as its technical partner.
“The involvement of SPIC is a vote of confidence towards our management and will help us to escalate the expansion of our footprint in the renewable energy segment,” he said in a statement today.
WREA today signed a memorandum of understanding (MoU) with SPIC Energy Malaysia Bhd (SEMB) to collaborate and acquire in part or whole operating feed-in tariff (FiT), net energy metering (NEM) and large scale solar (LSS) farm.
SEMB is a wholly-owned subsidiary of SPIC, which is one of China’s top five power generators.
Being a Global Fortune 500 company, SPIC has a good presence in the international energy market and has a presence in many countries.
With more than 126 GW installed generation capacity, SPIC plays a significant role in China and the internal renewable energy sector.
Choy said the collaboration would focus on the acquisition of a fully operated solar farm or those under construction.
“The collaboration will focus on the acquisition of solar farm, which would then undergo a process of repair and upgrade under a team led by SPIC.
“This will help the escalation of the turnaround of the solar farm that has been acquired and help to generate immediate positive cash flow,” Choy said.
WREA is responsible for the funding, and SEMB will provide technical support for the solar power plant and other RE projects in Malaysia.
The success of these projects will put WREA in a good position to be a renewable energy project owner, which will generate positive cash flow and a sustainable recurring income stream for FIHB.
The pivot into the renewable energy segment for FIHB marks a step-up for the company with a solid financial track record in the furniture and construction business.
Source: NST
