Petronas ventures into renewable energy

Petroliam Nasional Bhd (Petronas) and a consortium led by Japan's JXTG Holdings Inc are among the companies interested in buying a stake in India's Bina oil refinery, a source close to the matter said.

KUALA LUMPUR: Petroliam Nasional Bhd (Petronas) is acquiring 100% interest in Amplus Energy Solutions Pte Ltd, also known as M+, a leading Singapore-based company with a portfolio of distributed, renewable energy assets in Asia.

In a statement Monday, Petronas said it had entered into an agreement with I Squared Capital, an independent global infrastructure investment manager.

The acquisition, which is expected to be completed later this month, marks the oil major international foray into renewable energy.

Established in 2013, M+ caters to commercial and industrial customers, specialising in end-to-end solutions for rooftop and ground-mounted solar power projects. 

With a cumulative capacity of over 500 megawatt (MW) under operation and development, M+ serves more than 150 commercial and industrial customers at over 200 locations across India, the Middle East and South East Asia.   

“This acquisition reflects Petronas’ strategic intent to grow in the renewable energy space as part of our strategy to step out beyond oil and gas into the new energy business. 

“This also represents our first international solar venture and we look forward in providing energy solutions to our customers in these high growth energy markets,” Petronas president and group chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin said.

Commenting on the transaction, Gautam Bhandari, founding partner at I Squared Capital said: “Under I Squared Capital, M+ grew by over 400% annually to become a world-class, end-to-end company serving the corporates in Asia to reduce their greenhouse gases and combat climate change. 

“We believe that M+ will continue to play a leading role in building a greener future thanks to an outstanding management team and wish them and Petronas the best in their future endeavours.”  

Petronas is also working on a number of clean energy initiatives in Malaysia.