Gamuda Bhd group managing director Datuk Lin Yun Ling
KUALA LUMPUR: Gamuda Bhd
is eyeing some hydro pump development projects in Australia in a move to diversify its portfolio to become one of the main players in the renewable energy (RE) business.
Group managing director Datuk Lin Yun Ling said Gamuda's RE plans have reached beyond the Malaysian border with Australia being a very important and key market for the group.
"Australia is expected to become a big producer and exporter of RE in the coming years and the group is set to bid for a project in the country.
"There are quite a few (projects) on RE that are already in the pipeline by the Australian government which has a very strong emphasis on green energy production, and the one we are bidding for is in Tasmania," he said during a virtual press conference following Gamuda's 46th annual general meeting, today.
Lin said the group had earmarked a total of RM2 billion worth of investments for the RE segment under its five-year business plan, with aims to provide sufficient sources of green energy to serve market demand, which will be huge in the coming years.
"Currently, in Malaysia there is a supply-demand imbalance in green energy and when this vicious cycle is broken, we will see huge demand.
"We do not need to raise funds externally for the RM2 billion (allocation) as we have almost zero gearing. Given our assets base, we can borrow up to RM7-8 billion, and a gearing limit of 70 per cent of our net assets," he said.
Gamuda recently signed a subscription and shareholders' agreement with ERS Energy Sdn Bhd to subscribe for new shares representing to a 30 per cent equity interest in the homegrown solar energy service provider.
The strategic investment and partnership with ERS Energy is a concrete step in fast-tracking Gamuda's large-scale RE plans.
Lin noted that the group was not particularly attracted to just being involved as a solar farm contractor following the ERS Energy stake acquisition, but are also in advanced discussions for other large-scale RE assets.
He also highlighted that there was a need to accelerate tangible actions towards electricity decarbonisation in the country.
"With the new government of the day and many new faces, it is for them to come up with new ideas, policies and even more effective approaches to ensure the nation’s decarbonisation actions meet the net zero objective," he added. - Bernama
