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Infrastructure & PPPs in Malaysia - Q1 2022 Update

YOG INFRA Q1 2022 insight series

MALAYSIA saw emergence of solar sector related infrastructure developments on a larger scale in the first quarter of 2022, and a notable clean energy transition through planned development of a commercial hydrogen project by national energy company through partnership with an international company.

Read the key developments in Infrastructure and PPPs in Malaysia in our latest insight series

 

January 2022

METRONIC SIGNS PPA FOR 4 MWp SOLAR PV IN MALAYSIA

Metronic World Berhad, an engineering firm in Malaysia signs a power purchase agreement (PPA) with Technology PP Industries (Northern) Sdn Bh and Sinaran PPA to will build a 4 MWp photovoltaic project. The PPAs were signed for 25 years duration and tariffs would be MYR 0.23 (USD 0.055/EUR 0.048) per kWh.

Sinaran PPA which is 70% owned by Metronic World will build a 3121 kWp PV plant in the Sungai Petani in Kedah and will design, develop, finance, construct, commission, operate, own, and maintain the Solar PV project to deliver to Technology PP.


CYPARK COMMISSIONS A 30 MW SOLAR PLANT IN MALAYSIA

Cypark Resources Bhd (Cypark), a renewable and green technology developer, has commissioned a 30MW solar power plant for Viva Solar Sdn Bhd in Kedah, Malaysia. Cypark Ref Sdn Bhd, Cypark’s wholly owned subsidiary, will serve as the turnkey contractor and project financier for the solar park at Mukim Sik, which achieved full commercial operation date (COD) status on January 1, 2022, ahead of schedule.

Cypark Renewable Energy Sdn Bhd, will be in charge of the operation and maintenance of the facility for a period of 21 years.

The solar facility is expected to contribute positively to future earnings and net assets per share of Cypark.


February 2022

MALAYSIAN COMPANIES PARTNER FOR USD 167 MN RENEWABLE ENERGY COMPLEX

Malaysian port operator and property developer Suria Capital has signed a memorandum of understanding (MoU) with local company Vandelay Ventures to develop a renewable energy complex in the state of Sabah with an investment of MYR 700 Mn (USD 167 Mn).

The Sabah Maju Jaya Renewable Energy Industrial Complex to be built on Sapangar Bay will include a hydrogenated vegetable oil plant with a capacity of 250,000 metric tonnes (MT) per annum. This is expected to produce sustainable aviation fuel (SAF) from used cooking oil, waste animal fat and other industrial and agricultural residual products. It will also include a palm oil refinery with a capacity of 100,000 MT.

Bursa-listed Suria Capital, a Sabah state-owned company, owns the land for the development of the renewable energy complex while Sawit Kinabalu and Sabah Land Development Board will supply raw material for the projects and Sulzer Gtc Technology will provide the technology. The aviation fuel produced at the energy complex will be sold and marketed by Vandeley Ventures.

The project is targeted to complete by the year 2025.


March 2022

PETRONAS AND JAPAN'S ENEOS PLAN MALAYSIA COMMERCIAL HYDROGEN PROJECT

A unit of Malaysian national energy company Petronas and Japan's Eneos Corp will conduct a joint feasibility study for a commercial hydrogen production and conversion project to be set up in the Southeast Asian country. They plan to set up a hydrogen facility in the Kerteh area of the state of Terranganu and expect the project to have a production and conversion capacity of up to 50,000 tonnes per annum by the year 2027.

The clean hydrogen will be exported in liquid form as methylcyclohexane (MCH) to Japan and distributed to consumers through Eneos’ refineries. Hydrogen, produced using renewables, is seen as the cleanest form of energy. In the MCH liquid form, it can use existing conventional oil and petrochemicals infrastructure, reducing the need to develop new assets for hydrogen transport.

As part of the joint study, Petronas and Eneos will carry out a detailed technical and commercial assessment for production of low carbon hydrogen from Petronas' existing facilities, production of green hydrogen from a new hydro-powered facility, and hydrogen conversion into MCH. The two companies are also exploring other hydrogen projects and technology opportunities, both domestically and internationally.


SOLARCITY MALAYSIA BAGS 2 SOLAR PV PROJECTS FROM KSK GROUP

Solarcity Malaysia Sdn Bhd (SMSB) bags 2 solar PV projects in Selangor and Kuala Lumpur from KSK Group. Solarcity is a 70% owned subsidiary of G Capital Bhd. Solarcity will design, construct, install, own, operate and maintain the solar PV projects of 181 kWp and 90 kWp capacity respectively.

SMSB signed the agreement for 25 years with KSK. These 2 solar PV projects will reduce the carbon footprints of the KSK group and also reduce the energy expenditure of the company. G Capital Berhad is a public company listed on the Main Board of Kuala Lumpur Stock Exchange with stakes in more than 20 companies from various sectors across the country.


GOVERNMENT OF MALAYSIA TO INSTALL 10,000 EV CHARGERS BY 2025

The Government of Malaysia will partner with the private sector to install around 10,000 electric vehicle (EV) charging stations in Malaysia by 2025 as a part of the Low Carbon Mobility Blueprint (LCMB) 2021-2030.

The government will provide companies who plan to build EV infrastructure with tax incentives and financial assistance. Other efforts include the creation of the Electric Vehicle Taskforce, which aims to bring together key ministries, agencies, and private sector participants to enhance existing strategies and develop new ones for Malaysia’s EV industry.

The government will also develop standards for the EV industry, including charging systems, battery disposal and swapping, wireless charging to ensure that the EV technology is standardized and secure. Currently, there are about 600 EV public charging stations in Malaysia.


SOLARVEST TO BUILD 40 MW OF SOLAR FARMS IN MALAYSIA

Solarvest Holdings Bhd, a photovoltaic (PV) plants developer, has secured three engineering, procurement, construction and commissioning (EPCC) contracts with a combined value of RM154.4 million to develop 40 MW of large-scale solar farms in Perak, Malaysia.

The three plants include the 15MW TEJA 1, 10MW TEJA 2 and the 15MW Kellie Energy. The TEJA 1 and Kellie solar farms are scheduled to commence commercial operations by the end of 2022, while the TEJA 2 plant is scheduled for completion by mid-2023.

 

List of key transactions - Malaysia Q1 2022

Source: Inframation, YOG INFRA analysis

 

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