UEM Group Berhad, the wholly-owned subsidiary of Malaysian sovereign wealth fund Khazanah Nasional Berhad (Khazanah), has inked Memorandums of Understanding (MoUs) with local and foreign investors to develop a one gigawatt (GW) hybrid solar photovoltaic (PV) power plant integrated with a Renewable Energy (RE) Industrial Park in Malaysia.

UEM said in a statement on Thursday that the project is in line with the strategic and high-value national flagship energy transition projects under the Malaysia’s National Energy Transition Roadmap (NETR), which was launched by the Minister of Economy for which Khazanah has been named as the champion for Renewable Energy Zone (REZ) in Malaysia.

According to the statement, 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, engineering, procurement, construction, and commissioning (EPCC) 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 Macquarie Asset Management’s Green Investment Group unit Blueleaf Energy and ITRAMAS’s existing partners, Chinese contractor China Machinery Engineering Wuxi Co. Ltd. (CMECWUXI) and Singapore-based RE firm HEXA Renewables.

It is noted that 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 commercialization (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.

According to the statement, 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.

“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,” said Amirul Feisal Wan Zahir, Managing Director of Khazanah.

Meanwhile, UEM Group Managing Director Mohd Izani said that this project is in line with the strategic and high-value national flagship energy transition projects under NETR, launched by the Minister of Economy.

“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,” he said.

ITRAMAS Managing Director Lee Choo Boo said that the firm 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.

“I Squared Capital and CMECWUXI 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,” he added.

According to the statement, Blueleaf Energy, which is part of the MoU, will also contribute its 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,” said the firm.

CMECWUXI General Manager and Board Chairman Kathy Hsu said that the world is multilateral and 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,” she said.

I Squared Capital Senior Partner Harsh Agrawal said that having invested in nearly 5.8 gigawatts of renewable assets around the world, the firm is excited to bring its expertise in green power generation to help catalyze the energy transition in Malaysia, an Indo-Pacific Economic Framework (IPEF) founding member.

Khazanah spearheads green investment platform to attract new direct investments into Malaysia