The Project is in line with the strategic and high-value national flagship energy transition projects under the National Energy Transition Roadmap (NETR), which was launched by the Minister of Economy today for which Khazanah has been named as the champion for Renewable Energy Zone (REZ) in Malaysia.
The Project will be developed by UEM Group in collaboration with local investor, ITRAMAS Corporation Sdn. Bhd. (ITRAMAS), currently the largest vertically integrated solar plant developer, EPCC (Engineering, Procurement, Construction, and Commissioning) and service provider in Malaysia. The collaboration will see both parties leveraging complementary expertise, resources and networks, to achieve synergies that will ensure greater success for the Project.
The Project has also attracted renowned foreign strategic investors which include the likes of Blueleaf Energy and ITRAMAS’s existing partners, China Machinery Engineering Wuxi Co. Ltd. (CMECWUXI) and HEXA Renewables. The Project investors are in discussion with UEM Group to consider participating through multiple potential roles including collaborating on project development, financing (including equity investments) and commercialisation (including offtake of green electricity). ITRAMAS alongside CMECWUXI also intend to be the anchor tenants and initial green electricity offtakers within the RE Industrial Park.
The RE Industrial Park aims to attract foreign manufacturers and suppliers across the RE and Electric Vehicle (EV) value chains as well as other high-tech companies to set up operations and Research and Development facilities in the park, which in turn could drive the growth of the overall energy transition and EV ecosystems in Malaysia.
A brief introduction of the three foreign investors:
(1) Blueleaf Energy – a standalone portfolio company of Macquarie Asset Management’s Green Investment Group, is a leading green infrastructure-focused platform that develops, finances, owns and operates renewable energy, storage assets and decarbonisation solutions to accelerate the energy transition towards net zero. Macquarie Asset Management is a global asset manager that aims to deliver positive impact for everyone.
(2) CMECWUXI – a state-owned enterprise and subsidiary of China Machinery Engineering Co. Ltd., with presence in more than 100 countries, and businesses covering solar photovoltaic power generation as well as other renewable energy sources, large-scale machinery manufacturing, precision equipment, environmental protection, building materials, lighting, medical supplies, supply chain services and other industries; and
(3) HEXA Renewables (HEXA) – a leading developer of solar and wind projects with offices and teams on the ground in Singapore, Malaysia, Taiwan, South Korea, Japan, Philippines, and India. It is a wholly-owned subsidiary of I Squared Capital, a global infrastructure fund with approximately USD37 billion of assets under management. HEXA plans to partner with Development Finance Corporation (DFC), the U.S. government's development finance institution, to finance this Project in Malaysia, an Indo-Pacific Economic Framework for Prosperity (IPEF) founding member.
Signing the MOU for UEM Group was its Managing Director, Dato’ Mohd Izani Ghani. The other signatories are – Lee Choo Boo, Managing Director of ITRAMAS; Raghuram Natarajan, CEO of Blueleaf Energy; Kathy Hsu, Chairman of the Board and General Manager of CMECWUXI; and Vince Choi, CEO of HEXA Renewables.
Present to witness the signing was YB Mohd Rafizi Ramli, Minister of Economy; YB Nik Nazmi Nik Ahmad, Minister of Natural Resources, Environment and Climate Change; Dato’ Amirul Feisal Wan Zahir, Managing Director of Khazanah; Tunku Hammam Tunku Sulong, Executive Director of ITRAMAS; Nik Hadi Nik Mahmood, Country Head of Macquarie Group, Malaysia; Rong Wei, Deputy General Manager of CMECWUXI; and Harsh Agrawal, Senior Partner of I Squared Capital.
Dato’ Amirul Feisal Wan Zahir, Managing Director of Khazanah said, “Khazanah fully supports the NETR, a catalyst for the achievement of Malaysia’s aspiration in becoming a regional leader in the fields of energy transition and renewable energy. This Project is a step in the right direction and demonstrates UEM Group’s commitment to sustainable green initiatives moving forward.”
Dato’ Mohd Izani, Managing Director of UEM Group said, “This Project is in line with the strategic and high-value national flagship energy transition projects under NETR, launched by the Minister of Economy. We’re pleased to have on our side our local investor, ITRAMAS as well as established and globally renowned companies to develop and invest in our first 1 GW hybrid solar photovoltaic power plant integrated with RE industrial park. ITRAMAS, Blueleaf Energy, CMECWUXI, and HEXA Renewables are investors that are not only committed to invest and develop Malaysia’s renewable energy assets but have also pledged to upskill local contractors in the RE industry, provide job creation and undertake knowledge transfer, all of which fits into UEM Group’s aim of creating high quality employment opportunities for Malaysians.”
“ITRAMAS is fully committed, together with Khazanah and UEM Group, to ensure the resounding success of this flagship energy transition project under the RE Zone and the National Energy Transition Roadmap. We are delighted with the strong support and commitment of our long-term partners in the international market, I Squared Capital and CMECWUXI, to invest in this project and in Malaysia. Together with Khazanah, UEM Group, HEXA Renewables, Blueleaf Energy and CMECWUXI, we will provide a strategic catalyst to propel our nation to be a regional leader in energy transition and renewable energy value chain.” said Mr Lee Choo Boo, Managing Director of ITRAMAS.”
Blueleaf Energy is pleased to be part of the MoU today with our esteemed partners and contribute our technology, financing and commercialization expertise to realize the investment, development, construction and operation of reliable, long-term and commercially viable renewable hybrid energy solutions for the national significance RE industrial zone initiative in the country under the NETR framework. Investing in Malaysia's renewable energy projects is strongly supported by government’s sustainability vision and a growing demand for green energy solutions. The realization of this project with strong public and private sector support will be an important step towards achieving Malaysia’s climate commitment of 40 percent RE in the power mix by 2035, thereby creating a positive social and environmental impact and securing long-term benefits for the country.”
“The world is multilateral, but it is the responsibility and mission of every entrepreneur in the world to promote the development of economy between countries and benefit the happiness index of the people of the two countries. The world advocates a low-carbon lifestyle and realizes zero-emission manufacturing as soon as possible. As a member of “CMEC New Energy”, we, CMECWUXI, take it as our corporate mission and responsibility, and work hard with UEM Group/ITRAMAS for the development of new energy in Malaysia, China, and even the world!” Kathy Hsu, Chairman of the Board and General Manager of CMECWUXI.“
I Squared Capital and our wholly owned renewable energy platform, HEXA Renewables Malaysia, are proud to participate in this landmark project,” said Harsh Agrawal, Senior Partner at I Squared Capital. “Having invested in nearly 5.8 gigawatts of renewable assets around the world, we are excited to bring our expertise in green power generation to help catalyze the energy transition in Malaysia, an IPEF founding member.”