KAB executive deputy chairman and group managing director Datuk Lai Keng Onn -LOW BOON TAT/THE STAR
ALOR SETAR: Kinergy Advancement Bhd
(KAB) said its proposed acquisition of a 9.6MW mini-hydropower plant in Kedah marks another move into the renewable energy portfolio in Asean.
In a statement today, the energy solutions provider said the acquisition, via wholly owned subsidiary KAB Energy Holdings Sdn Bhd (KABEH), involves acquiring the entire equity stake in Tunjang Tenaga Sdn Bhd that has an 80 per cent stake in SDF Hydro Sdn Bhd.
"The other 20 percent is owned by state investment arm Menteri Besar Incorporated (MBI) Kedah,” the statement said.
KABEH and vendor Vizione Energy Sdn Bhd, a wholly owned subsidiary Vizione Holdings Bhd, entered into a share purchase agreement for Tunjang Tenaga Sdn Bhd’s 100 per cent stake, the statement said, referring to a Bursa Malaysia Feb 28 filing.
SDF Hydo will operate a mini-hydropower plant at Pedu Dam, Sik, which has a total approved installed capacity of 9.6MW. Tenaga Nasional Bhd substation has approved a net export capacity of 8.0MW.
The project has a 21-year concession starting from the feed-in tariff commencement date scheduled on April 30, 2027.
Meanwhile, KAB executive deputy chairman cum group managing director Datuk Lai Keng Onn said building on the company’s recent acquisition of the maiden 11MW mini-hydropower plant in North Sumatera, Indonesia, in August 2023, this current investment represents a crucial move to realise its vision to lead in sustainable energy development in the region.
"By harnessing the untapped potential of the Pedu Dam, we anticipate making substantial advancements in renewable energy generation, furthering Malaysia's environmental sustainability objectives,” he said.
Hydropower plants are key contributors to renewable energy production and generation because of their capacity to deliver stable energy outputs, the statement said.
"The addition of this new mini-hydropower plant into our renewable energy portfolio strengthens our position as a holistic one-stop energy and engineering solutions provider, further expanding our footprint in sustainable energy across Asean.
"By harnessing the untapped potential of Pedu Dam, we anticipate making substantial advancements in renewable energy generation, furthering Malaysia's environmental sustainability objectives,” Lai said.
He added that the group's mini-hydropower total installed capacity will rise to 20.6MW on completion of these projects in North Sumatera and Kedah. - Bernama
