KUALA LUMPUR: UEM Group Bhd through its wholly-owned subsidiary and green industry arm, UEM Lestra Bhd along with HEXA Renewables Malaysia Sdn Bhd and ITRAMAS Corporation Sdn Bhd announced that they have made significant strides in developing the one-gigawatt (1GW) hybrid solar power plant, a project that was first announced by the Government in July 2023.
The 1GW project is a key flagship venture under the National Energy Transition Roadmap (NETR) and on July 27, last year, the three companies signed a Memorandum of Understanding (MoU) for 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).
In less than six months after the MoU signing and to partly realise the 1GW project, the following agreements were signed today which will see the three companies working together to develop the first 500-megawatt (500MW) hybrid solar power plant, to be located in Segamat, Johor:
> Shareholders agreement between UEM Lestra and HEXA Renewables to form a joint venture company (JV) known as, Lestra Hexa JV Sdn Bhd (Lestra Hexa JV), an entity that is 51%-owned by UEM Lestra and the remaining 49% by HEXA Renewables.
> Technical partner agreement between Lestra Hexa JV and ITRAMAS, Malaysia’s largest vertically integrated solar plant developer, EPCC (Engineering, Procurement, Construction, and Commissioning) and service provider. Under this agreement, ITRAMAS will provide technical services in developing a complete EPCC package for Lestra Hexa JV.
Present and signing on behalf of UEM Lestra was its chairman and UEM Group’s managing director Datuk Mohd Izani Ghani while HEXA Renewables was represented by its chief executive officer Vince Choi and ITRAMAS by its group managing director Lee Choo Boo.
Present to witness the event were UEM Group chairman Datuk Amran Hafiz Affifudin, I Squared Capital (the parent company of HEXA Renewables) senior partner Harsh Agrawal and ITRAMAS executive director Tunku Hammam Tunku Sulong.
Mohd Izani said, “We’re off to a good start in realising this strategic and high-value national flagship energy transition project.
“In addition to formalising our partnerships with HEXA Renewables and ITRAMAS, we have also secured a suitable land in Segamat, Johor that will house the 500MW hybrid solar power plant.”
“I’m pleased to also share that engagements with potential off-takers for the first 500MW solar power plant have been positive and we will be firming up the details in the coming months.
“In addition, we will be working with the Government on the details of the Third Party Access (TPA) framework that will enable this project to go live,” he added.
On the remaining 500MW, Mohd Izani said that discussions between UEM Lestra and its other partners are ongoing and an update will be provided in the near future.
Commenting on the progress made, Choi said,” We are extremely excited to have reached another significant milestone towards realising this monumental project of Malaysia’s NETR.
“The team has been working relentlessly to come this far and will continue to leverage on our collective strengths and experience in developing and executing projects of this scale.
“We are confident the project, along with other NETR initiatives, will blaze the trail of making Malaysia the renewable energy hub of South-East Asia.”
This was further echoed by Lee, who said, “The progress of this project, together with our partners, UEM Lestra and HEXA Renewables, is a source of great enthusiasm for the entire team at ITRAMAS.
“It’s a milestone we have been eagerly working towards. The development and finalisation of the TPA framework, along with our engagements with potential off takers, are pivotal in shaping our project’s immediate impact, transitioning our plans into action.
“This collective commitment is poised to make a significant, tangible contribution to Malaysia’s energy landscape.”