MAIN Market-listed one-stop provider of sustainable energy and engineering solutions, Kinergy Advancement Bhd (KINERGY), has formalised a definitive partnership with B.Grimm Power Public Company Ltd (B.Grimm Power), a major Thailand-based multinational energy conglomerate in the ASEAN region.
Under the agreement, B.Grimm Power will invest RM41.52 mil to acquire a 49% stake in JATI Cakerawala Sdn Bhd which is KINERGY’s investment vehicle for the proposed full-new built gas turbine power plant.
The tie-up extends beyond project execution milestone in the deal whereby KINERGY retains a 51% controlling interest in JATI.
It marks KINERGY’s evolution from a pure engineering, procurement, construction and commissioning (EPCC) contractor into an independent power producer (IPP) by carving out a strategic niche while establishing a platform for longer-term collaboration with B.Grimm Power across selected energy opportunities.
Set against B.Grimm Power’s publicly articulated plans to invest more than RM4.3 bil in Malaysia’s renewable energy and power sectors as well as its established regional renewable track record, the project forms the foundation of a broader technical and investment relationship.
Additionally, it reaffirms KINERGY’s official entry into the IPP space by placing the group alongside established Malaysian power producers such as Malakoff Corp Bhd and YTL Power International Bhd while standing out as the only sub-RM1 bil stock with IPP exposure.
The KINERGY-led consortium – where B.Grimm Power strengthens the platform through its IPP-scale technical, engineering and operating expertise – is tasked with the development of a new combined-cycle gas turbine (CCGT) power plant.
“Infrastructure is a long-term commitment. When developing a national asset that must operate reliably for decades, the choice of partner matters,” commented KINERGY’s group managing director Datuk Lai Keng Onn of the B.Grimm Power partnership.
“B.Grimm’s decision to invest at this early stage reflects a shared view on the long-term value of the site and the discipline required to develop it properly.”
Added Lai who is also KINERGY’s executive deputy chairman: “For KINERGY, this marks a clear step from executing projects for others towards building and owning assets with lasting value.”
From KINERGY’s perspective, the project is structured to support earnings across different phases of the asset lifecycle.
During the construction period, the group expects to participate in EPCC activities by leveraging its experience in gas-fired power projects to capture value through execution.
Over the longer term once the plant is commissioned, the project is intended to contribute stable, recurring income under the IPP model.
At the end of the day, electricity generated will be sold to Tenaga Nasional Bhd TNB) under a power purchase agreement (PPA) which is expected to be finalised by the third quarter of this year.
EPCC works are slated to commence in 1Q 2027, thus setting the stage for the Phase 1 commercial operations by end-2029.
At the close of today’s (Jan 28) market trading, KINERGY was down 0.5 sen or 1.3% to 38 sen with 8.94 million shares traded, thus valuing the company at RM830 mil. – Jan 28, 2026
