UEM Group inks deal with Itramas, Hexa Renewables to develop 500MW hybrid solar plant in Johor
19 Jan 2024
UEM Group Bhd, a wholly-owned subsidiary of Khazanah Nasional Bhd, will collaborate with Itramas Corp Sdn Bhd and Hexa Renewables on the first phase of the national flagship 1GW hybrid solar photovoltaic energy transition project — the development of a 500MW hybrid solar plant in Johor.
Towards the development of the 500MW hybrid solar plant, UEM Group’s wholly-owned green industry arm, UEM Lestra Bhd, has inked a shareholder agreement with Hexa Renewables Malaysia Sdn Bhd to form a joint venture (JV) company, Lestra Hexa JV Sdn Bhd — 51%-controlled by UEM Lestra and 49%-owned by Hexa Renewables.
Concurrently, Lestra Hexa JV has inked a technical partnership agreement with Itramas, which will see Itramas providing technical services in developing a complete engineering, procurement, construction and commissioning (EPCC) package for the JV.
According to UEM Group, Itramas is Malaysia’s largest vertically integrated solar plant developer, EPCC and service provider, while solar and wind project developer Hexa Renewables is a portfolio company of US-based infrastructure investor I Squared Capital.
Besides formalising the partnerships, UEM Group managing director Datuk Mohd Izani Ghani said the trio has also secured suitable land in Segamat, Johor where the 500MW hybrid solar power plant will be housed.
“I’m pleased to also share that engagements with potential off-takers for the first 500MW solar power plant have been positive and we will be firming up the details in the coming months.
“In addition, we will be working with the government on the details of the Third Party Access (TPA) framework that will enable this project to go live,”said Mohd Izani, who is also the chairman of UEM Lestra, in a statement .
Itramas managing director Lee Choo Boo said the development and finalisation of the TPA framework, along with engagements with potential off-takers, are pivotal in shaping the project’s immediate impact, transitioning the trio’s plans into action.
“The team has been working relentlessly to come this far and will continue to leverage on our collective strengths and experience in developing and executing projects of this scale,” Hexa Renewables CEO Vince Choi added.
Touching on the remaining 500MW to be developed under the national flagship 1GW hybrid solar PV project, Mohd Izani said discussions with its other partners are ongoing and an update will be provided in the near future.
The 1GW hybrid solar PV plant was announced under the government’s National Energy Transition Roadmap (NETR) launched back in July last year, which will be integrated with a renewable energy (RE) industrial park.
Likewise, in July last year, UEM Group established a RM7 billion sustainable and responsible investment sukuk programme to finance investments to be undertaken by UEM Lestra.
On the sukuk programme’s establishment, the group said it aims to grow its current assets organically and form strategic partnerships, such as JVs, to execute projects in four sectors, namely RE and storage, integrated energy solutions, green or electric mobility, and waste management and recycling.
Source: The Edge Malaysia
