The MoU aims to leverage on J-POWER’s operational and technical expertise in the thermal, hydro and renewable power markets
by MARK RAO
MALAKOFF Corp Bhd will collaborate with Japan’s Electric Power Development Co Ltd (J-POWER) to potentially develop greenfield and brownfield power generation and/or water projects globally, including in Malaysia.
Under the memorandum of understanding (MoU), both parties agree to jointly evaluate the potential development of these power and water projects by leveraging on their respective expertise and experience.
Malakoff is the country’s largest independent power producer with an effective generating capacity of 5,910MW from six power plants.
The company, which is a member of the MMC Group, will bring its experience in the power and water desalination projects, as well as other collaborative frameworks including knowledge sharing and technical services, a statement yesterday noted.
J-POWER is among the largest power companies in Japan with a 24.6GW installed capacity worldwide.
This includes 61 hydroelectric power plants and 22 wind farms across Japan. The MoU aims to leverage on the company’s operational and technical expertise in the thermal, hydro and renewable power markets.
J-POWER also operates major transmission lines spanning 2,400km in length and has extensive consulting experience on over 357 projects in 64 countries over the past 50 years.
The MoU was signed by Malakoff CEO Datuk Ahmad Fuaad Mohd Kenali and J-POWER director and head of global power business division Dr Yoshiki Onoi.
Speaking on the partnership, Ahmad Fuaad said the collaboration is a synergistic opportunity for both parties to leverage on their respective strengths.
This is in view of further driving operational effectiveness and efficiency of its power plants, as well as to collaborate on future projects, he said in a statement yesterday.
Apart from Malaysia, Malakoff’s international assets include power and water desalination ventures in Saudi Arabia, Algeria, Bahrain, Oman and Australia.
These assets have an effective capa- city of 690MW of power and 420,925 cu m per day of water desalination. The company is also actively looking to venture further into the Middle East, North Africa and South-East Asian markets.
Note that Malakoff tabled a US$70 million (RM288 million at the time) bid to acquire Khazanah Nasional Bhd’s Desaru Investments (Cayman Island) Ltd to effectively raise it stakes in Shuaibah Water & Electricity Co Ltd and Shuaibah Expansion Project Co Ltd.
The latter two companies are the main water suppliers for the Makkah Province in Saudi Arabia and provide 13% of the country’s power and water capacity.
If the acquisition is completed, Malakoff’s total effective generation capacity for power and water will increase to 6,708MW and 544,375 cu m per day respectively against its exis- ting capacity of 6,600MW and 420,925 cu m per day.