KAB inks 20-year power purchase agreement for Nextgreens’ Pahang project

ENGINEERING and energy solutions provider Kejuruteraan Asastera Bhd’s (KAB) unit has entered into a 20-year solar power purchase agreement (PPA) with a subsidiary of Nextgreen Global Bhd. 

Nextgreen has also agreed to purchase the solar PV energy generated, it said in an exchange filing today. 

KAB’s wholly owned company KAB Core Connect O&M Services Sdn Bhd has signed two PPAs with Nextgreen Pulp and Paper Sdn. Bhd. (NPP) to design, construct, install, own, operate and maintain solar PV systems with total combined capacity of 3,387-kilowatt peak (kWp) on the rooftops of multiple production plants and buildings at the latter’s Green Technology Park in Pekan, Pahang. 

The solar PV systems will be installed in two phases, with Phase 1 and Phase 2 having installed capacities of 2,507 kWp and 880 kWp, respectively. 

The solar PV installations will provide 88,789 megawatt hours (MWh) in energy savings and reduce 51,942 metric tonnes of carbon dioxide equivalents (tCO2e) over the next 20 years, it said. 

KAB MD Datuk Lai Keng Onn the solar PV contracts with Nextgreen are designed to enhance the energy efficiency and sustainability of its manufacturing operations and support its aspiration of achieving a green economy. 

KAB’s sustainable energy solutions (SES) segment has 11 operational solar PV contracts in Malaysia and Thailand with a combined installed capacity of 12,931 kWp, as well as co-generation and waste-heat-recovery facilities. 

At 4.30pm, the counter was trading 47.5 sen, giving it a market capitalisation of RM859 million. — TMR /graphic TMR