G CAPITAL Bhd has made further inroad into the seemingly ‘lucrative’ renewable energy industry.
Yesterday, the company’s 70%-owned subsidiary Solarcity Malaysia Sdn Bhd has today signed a 25-year Solar Power Purchase Agreement (PPA) with Evergreen Fibreboard Bhd.
A filing with Bursa Malaysia today shows that Solarcity will design, construct, install, own, operate and maintain a solar photovoltaic energy generating system with a total capacity of 7.0 megawatt (MW) under the Net Energy Metering (NEM) scheme at the premises of Evergreen in Batu Pahat, Johor.
“The installation of the solar power generating facilities are expected to reduce Evergreen’s energy expenditure and at the same time reduce their carbon footprint which is in line with Malaysia’s renewable energy (RE) agenda,” commented G Capital’s executive director Tan Sri Dr Ali Hamsa.
“With the Government’s goals to increase the use of RE to 20% by 2025, we are optimistic that the RE sector has a promising prospect in the long run. We are thrilled to see growing green conscious in Malaysia and that another corporate client embarking in this journey with us.”
By winning of 7.0MW PPA, Solarcity has bagged a total of 16.6MW PPA.
Listed on the Main Market of Bursa Malaysia, G Capital is an investment holding company which through its subsidiaries, The group is principally involved in the transportation services and mini-hydropower activities in Malaysia.
The transportation segment has been the sole revenue contributor to group before the construction and commissioning of its mini-hydropower projects.
Recall that discontinuation of the National Service Training Programme in 2018 – coupled with the strong headwinds of COVID-19 pandemic which started last year – has taken a toll to the group’s financial performance.
Moving forward, the group targets to accelerate the development of its current mini hydropower projects as well as embarking and diversifying into the provision of energy solutions and prioritising the expansion of its renewable energy segment.
This diversification aims to improve the revenue and earnings of the G Capital group as well as reducing its reliance on the existing core business ie transportation.
At the close of today’s trading, G Capital was up 6.5 sen or 8.23% to 86.5 sen with 4.7 million shares traded, thus valuing the company at RM274 mil. – June 17, 2021
