SunCon partners ENGIE SE Asia to expand district cooling technology in Malaysia


SUNWAY Construction Group Bhd’s (SunCon Group) wholly-owned subsidiary, Sunway Construction Sdn Bhd (SunCon), has inked a memorandum of understanding (MoU) with ENGIE South East Asia Pte Ltd (ENGIE SEA) for a joint venture (JV) to boost Malaysia’s environmental sustainability efforts via the expansion of district cooling technology.

“The partnership will accelerate the adoption of district cooling technology in Malaysia, which will contribute towards the nation’s environmental sustainability goals,” SunCon Group said in a statement yesterday.

It is also in line with Sunway Bhd’s commitment towards advancing the United Nations Sustainable Development Goals, particularly Goal 7: Affordable and Clean Energy.

The JV company will engineer, finance, construct, develop, operate and maintain district cooling systems for greenfield and brownfield urban development projects.

These projects include some of Sunway’s portfolio of office buildings, retail malls, educational institutions, medical centres, hotels, resorts, theme parks and factories.

The JV firm will also leverage Sunway’s capabilities and experience as a conglomerate with 13 business divisions and ENGIE SEA’s core business and technical competencies in integrated green and sustainable environmental solutions.

ENGIE SEA is part of French energy company ENGIE SA and operates 393 district heating and cooling networks globally, including four district cooling plants in Malaysia, the Philippines and Singapore.

“This new venture will not only provide strong long-term recurring revenue to SunCon Group, but also complements our core competencies in delivering value-added and sustainable solutions to our clients,” SunCon MD Liew Kok Wing said.

District cooling systems are fast becoming the preferred cooling solution for cities and buildings worldwide as opposed to standalone chiller plants.

The system produces chilled water centrally for distribution to nearby facilities through a network of insulated pipes to achieve efficient air conditioning of buildings.

It is a more efficient approach which generates significant savings in capital expenditures, energy and operating costs compared to conventional de-centralised chiller plants.