UAE's Masdar partners two M'sian cos for US$8bil investments in renewable energy

The United Arab Emirates’ energy giant Abu Dhabi Future Energy Co PJSC (Masdar) has picked Citaglobal Bhd and Cypark Resources Bhd to help undertake massive renewable energy (RE) projects as part of its whopping US$8 billion investments in Malaysia

KUALA LUMPUR, 4 DECEMBER 2023: The United Arab Emirates' energy giant Abu Dhabi Future Energy Co PJSC (Masdar) has picked Citaglobal Bhd and Cypark Resources Bhd to help undertake massive renewable energy (RE) projects as part of its whopping US$8 billion investments in Malaysia.

Citaglobal, together with its major shareholder TIZA Global Sdn Bhd, signed a 40:60 joint development agreement (JDA) with Masdar to build a US$2 billion (RM9.75 billion) two-gigawatt (2GW) solar farm in Pahang.

As for Cypark, it will work with Masdar to undertake an estimated 1GW of RE projects in Malaysia.

The partnership signing was witnessed by Yang DiPertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah at the Malaysia Pavilion in Expo City Dubai on Friday, in conjunction with the 28th Conference of the Parties of the UNFCCC (COP28).

Masdar is jointly owned by Abu Dhabi National Oil Company, Mubadala Investment Co and Abu Dhabi National Energy Company.

The company is targeting an RE portfolio capacity of at least 100GW by 2030.

Both the deals are part of Masdar's broader investments to develop up to 10GW of RE projects in Malaysia, including ground mounted, rooftop and floating solar power plants, onshore wind farms and battery energy storage systems (BESS).

This follows the signing of a memorandum of understanding with the Malaysian Investment Development Authority in early October.

According to Citaglobal, the US$2 billion project will involve the construction of ground-mounted solar arrays, floating solar farms and BESS across multiple sites in suitable land, dams, lakes and offshore perimeters across Pahang.

It will be developed in phases over five years.

Being at the most advanced stage of the JDA, Citaglobal expects to be one of the earliest to initiate such project in Pahang.

Citaglobal and TIZA will hold a combined 40 per cent stake in the project, with the remaining 60 per cent by Masdar.

Each entity will be responsible for funding its respective share of the development cost.

Citaglobal will fund the subscription of its portion of the initial share capital through proceeds from its private placement completed earlier, or internally generated funds.

Citaglobal executive chairman and president Tan Sri Mohamad Norza Zakaria said together with Masdar, the company is confident of making faster progress towards its climate targets, besides meeting Malaysia's long-term energy requirements in a responsible and cost-efficient manner.

"To the state of Pahang, the benefits from this project will significantly outweigh its cost. Besides the obvious economic multiplier effect, the livelihoods of the people of Pahang will be greatly enhanced via social innovations and environmental protection.

"This is similar to how Masdar aims to power 50,000 homes and offset 214,000 tonnes of carbon dioxide emissions from its first floating photovoltaic project in Cirata, West Java in Indonesia," he said.

Masdar chief executive officer Mohamed Jameel Al Ramahi said the company was proud to strengthen its support for Malaysia's RE ambitions.

"As a clean energy pioneer with over 17 years' experience in deploying renewable and clean energy projects at scale, we look forward to helping build Malaysia's RE capacity with this agreement in support of its net-zero targets," he added.

Cypark chairman Datuk Ami Moris,, meanwhile, said the partnership will focus on cutting-edge technologies including floating solar, ground-mounted solar, rooftop solar, hydro and hybrid systems.

"This emphasis aims to ensure diverse and efficient energy solutions. Both parties will also actively collaborate on the development of BESS to enhance grid stability and optimise renewable energy usage," she said.

"As Malaysia's leading solar and waste to energy producer, we are steadfast in growing the renewable energy ecosystem in Malaysia. Cypark looks forward to collaborating with Masdar, aligning our combined experience with global efforts to transition towards a low-carbon future," Ami added.

Source: New Straits Times

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