ONE-STOP sustainable energy and engineering solutions specialist Kinergy Advancement Bhd (KAB) (formerly Kejuruteraan Asastera Bhd) has embarked on a potential move into becoming an independent power producer (IPP) with a RM35 mil acquisition of an IPP in the northern state of Perlis.
The acquisition of a 47.5% equity stake in Jati Cakerawala Sdn Bhd, a wholly-owned subsidiary of Pesaka Ventures Sdn Bhd, has enabled KAB to assume the role as one of the project developers alongside other stakeholders to drive the re-powering of this 650-megawatt (MW) power plant.
Owned by Teknologi Tenaga Perlis Consortium Sdn Bhd (TTPC), a prominent Malaysian IPP, the energy asset had successfully completed its 21-year power purchase agreement (PPA) and was de-commissioned in March 2024.
Having been a critical asset in the nation’s energy supply for over two decades, the site which is strategically located on a 37.5-hectare coastal site in Perlis has now re-opened as a high-potential project.
Its re-development and re-powering present a unique opportunity to further strengthen the nation’s energy infrastructure by offering longer-term energy security for Malaysia’s future growth.
In this regard, KAB has successfully secured this strategic deal with Pesake Ventures after having been identified as an ideal developer to collaboratively re-develop and re-power the said site.
Beyond the valuable land asset that accompanies this acquisition, the project’s true competitive advantage lies in the infrastructure which is expected to deliver significant benefits as well as in driving the success of this re-powering project which shall solidify the group’s investment rationale.
“The strategic value of this acquisition is rooted in the robust energy infrastructure established in the past,” commented KAB’s group managing director Datuk Lai Keng Onn.
“Its proximity to TNB’s 275kV (kilovolt) transmission line and the Peninsular Gas Utilisation (PGU) III pipeline ensures seamless access to both power distribution and natural gas supply.”
Added Lai who is also KAB’s executive deputy chairman: “Additionally, the availability of a reliable water source at the site further confirms that this land is primed for the development of a new power plant.
“Recognising the critical power supply gap in West Malaysia, this acquisition and its subsequent re-powering will be instrumental in addressing the nation’s energy shortage.”
From the date of this announcement, KAB is committed to utilising its full capabilities and resources alongside all other stakeholders to ensure the successful development of this pivotal energy project.
Upon commissioning of the new power plant, Lai expects it to make a significant and sustainable contribution to the group’s earnings growth.
As a flagship re-powering project, it will further solidify KAB’s expertise and experience, thus reinforcing the group’s position to pursue continued growth opportunities in the energy sector.
At the close of today’s (Feb 7) trading, KAB was up 0.5 sen or 1.64% to 31 sen with 16.9 million shares traded, thus valuing the company at RM644 mil. – Feb 7, 2025
