Wednesday, December 18

Malakoff to invest RM2.5bil on solar projects within Albukhary Group

Malakoff Corp Bhd is expected to invest around RM2.5 billion to develop 500MW of solar projects within the Albukhary Group over five years.

The Syed Mokhtar Albukhary-controlled business group comprises the MMC Group, DRB-Hicom Bhd and Tradewinds Plantation Bhd, among others.

Malakoff and MMC Ports, a member of MMC Group, inked a memorandum of understanding (MoU) today to undertake business exploration in green power initiatives with investments worth RM350 million.

This includes but is not limited to any solar power programme under the government such as the Corporate Green Power Programme (CGPP), Self-Consumption (SelCo) rooftop solar programme, cold ironing or shore-to-ship power supply, installation of electric vehicle charging stations, and others.

Malakoff managing director and CEO Anwar Syahrin Ajib said Malakoff and MMC Ports together with its units Northport (Malaysia) Bhd, Johor Port Bhd, Tanjung Pelepas Sdn Bhd and Penang Port Sdn Bhd are set to embark on a “transformative partnership” within the CGPP.

Under the MoU, Malakoff will assume the role of a solar power producer and MMC Ports as corporate consumers, he said.

“This strategic collaboration paves the way for MMC Ports to tap into renewable energy (RE) through solar power,” he told reporters after the Malakoff-MMC Group MoU signing.

Anwar said under the SelCo rooftop solar programme, Malakoff will serve as the developer for end-user MMC Ports, and manage the installation, operation and maintenance of the solar photovoltaic (PV) system.

In line with the government’s aim to achieve a 70 percent RE capacity mix by 2050, Malakoff and MMC Ports are actively exploring opportunities to collaborate within the large-scale solar (LSS) programme.

For this, both organisations are considering the implementation of cold ironing or shore-to-ship power supply solutions.

“Cold ironing or shore-to-ship power supply is the process of providing electricity to the ship at berth, during which, the engines are shut down, significantly reducing greenhouse gas emissions and air pollution,” he said.

To date, Malakoff has 67MW of total solar installed capacity through LSS and rooftop solar, and a 84MW of hydropower capacity progressing towards completion.

Anwar said the company is also exploring energy exports to neighbouring countries such as Singapore.

The company aims to reach an RE capacity of 1,400MW by 2031 and achieve a 15 percent to 20 percent recycling rate by 2025 from waste collected by wholly owned subsidiary, Alam Flora Sdn Bhd.

As at 4.44pm, Malakoff’s share price dropped one sen or 1.67 percent to 59 sen, giving the group a market capitalisation of RM2.92 billion.

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