Malakoff partners Touch Meccanica on RE projects worth RM1.3b in Pahang

Malaysia’s largest IPP expands power generation capacity into new areas, especially booming solar energy segment

By FARA AISYAH / Pic By MUHD AMIN NAHARUL

Malakoff Corp Bhd has inked a memorandum of understanding (MoU) with Touch Meccanica Sdn Bhd (TMn) to develop a large-scale solar photovoltaic (PV) plant and several mini hydropower projects in Pahang.

The projects, with an estimated total development cost of RM1.3 billion, would see the country’s largest independent power producer (IPP) expanding its power generation capacity into new areas, especially the booming solar energy segment.

Malakoff CEO Datuk Ahmad Fuaad Kenali said the solar PV project is estimated to cost about RM300 million, while the mini hydropower projects’ bill is estimated at RM1 billion.

He said the the large-scale solar PV project would generate up to 50MW.

“Another project consists of several mini hydropower projects with a total collective capacity of around 100MW.

It’s a sizeable project and is not focused in just one location.

It could comprise of seven mini projects,” Ahmad Fuaad said in Kuala Lumpur at the signing of the MoU yesterday.

Also present at the event was the Regent of Pahang, Tengku Abdullah Sultan Ahmad Shah.

Malakoff will conduct a feasibility study to ascertain the technical and commercial viability of the projects.

The Bursa Malaysia-listed company will determine the locations for the projects after the completion of the study.

A few areas in Pahang including Bera, Maran and Pekan have been identified as suitable sites to develop the mini hydropower generation facilities.

Malakoff and TMn are looking at the Semuji area in Gambang to develop the solar PV project.

“Once we’ve received the approval from the authorities to develop the solar PV project, it might take about a year for development.

“The mini hydropower project will be delivered in stages. The first one will be delivered within two years, and the other projects will be delivered a little later — depending on the progress and commencement dates,” Ahmad Fuaad said.

He added that Malakoff is committed to expanding the share of renewable energy (RE) in its generation portfolio, and these projects serve as catalysts for the company to play a bigger role in developing the country’s RE projects.

Currently, Malakoff owns a 50% stake in the Macarthur Wind Farm in Victoria, Australia, with an effective generation capacity of 210MW.

It is also actively looking to venture into the fast-growing Middle Eastern and North African region, as well as South-East Asia.

In an exchange filing to Bursa Malaysia yesterday, Malakoff said subject to the outcome of the feasibility study, both parties may enter into a definitive agreement to formalise their collaboration, joint venture or other appropriate collaboration arrangements in relation to the projects, upon the terms and conditions to be mutually agreed upon between the parties.

The agreement shall be effective and valid for a period of six months from the date of the MoU, with an option to extend for another six months or up to the date of the definitive agreement being entered into between the parties, whichever is earlier.

Malakoff’s shares closed seven sen higher at RM1.02 yesterday.