UEM Group Berhad (UEM Group), a wholly-owned subsidiary of Khazanah Nasional Berhad (Khazanah), has entered into Memorandums of Understanding (MoUs) with both local and foreign investors to undertake the development of a one gigawatt (1 GW) Hybrid Solar Photovoltaic (PV) Power Plant integrated with a Renewable Energy (RE) Industrial Park in Malaysia.
This transformative Project aligns with the National Energy Transition Roadmap (NETR), a strategic initiative that encompasses high-value national flagship energy transition projects. The Minister of Economy has recently launched the NETR, with Khazanah taking on the role of champion for the Renewable Energy Zone (REZ) in Malaysia. Through this collaborative effort, UEM Group and its partners aim to contribute significantly to Malaysia’s sustainable energy goals and advance the nation’s commitment to renewable energy development.
UEM Group, in close collaboration with local investor ITRAMAS Corporation Sdn. Bhd. (ITRAMAS), the leading vertically integrated solar plant developer and EPCC service provider in Malaysia, is set to undertake the development of the Project. Leveraging their complementary expertise, resources, and networks, the partnership aims to achieve synergies that will drive the Project’s success.
Moreover, the Project has attracted esteemed foreign strategic investors, including renowned entities like Blueleaf Energy, as well as ITRAMAS’s existing partners, China Machinery Engineering Wuxi Co. Ltd. (CMECWUXI) and HEXA Renewables. These investors are actively engaging in discussions with UEM Group to explore multiple potential roles, such as collaborating on project development, providing financing (including equity investments), and facilitating commercialization (including green electricity offtake).
Additionally, ITRAMAS, alongside CMECWUXI, intends to be the anchor tenants and initial green electricity offtakers within the Renewable Energy Industrial Park, further solidifying the Project’s prospects for success and contributing to the growth of renewable energy in Malaysia.
The Renewable Energy (RE) Industrial Park aspires to draw foreign manufacturers and suppliers from the RE and Electric Vehicle (EV) value chains, along with other high-tech companies, to establish their operations and Research and Development facilities within the park. This strategic initiative is poised to stimulate the growth of the overall energy transition and EV ecosystems in Malaysia, fostering innovation, investment, and technological advancements in the sustainable energy sector.
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.
The MOU signing ceremony witnessed the participation of notable dignitaries and executives. Dato’ Mohd Izani Ghani, Managing Director of UEM Group, signed on behalf of the company. The other signatories included 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.
The ceremony was graced by the presence of esteemed guests, including 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. The presence of these key figures highlights the significance of the collaboration and underscores the collective commitment to driving sustainable energy initiatives and fostering growth in Malaysia’s renewable energy and electric vehicle ecosystems.
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 expresses great satisfaction in being a part of the MoU signing today alongside esteemed partners. They are committed to leveraging their technology, financing, and commercialization expertise to make the investment, development, construction, and operation of reliable, long-term, and commercially viable renewable hybrid energy solutions a reality for the national significance RE industrial zone initiative in Malaysia, as outlined in the NETR framework.
Blueleaf Energy acknowledges that investing in Malaysia’s renewable energy projects aligns perfectly with the government’s sustainability vision and the increasing demand for green energy solutions. They believe that the successful implementation of this project, with robust support from both the public and private sectors, will be a significant step towards fulfilling Malaysia’s climate commitment of achieving 40 percent renewable energy in the power mix by 2035. This endeavor is expected to have a positive social and environmental impact, contributing to a greener future for the country while securing long-term benefits.
“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.”