SUSTAINABLE energy specialist Kinergy Advancement Bhd (KAB) is expanding further into the Southeast Asian renewable energy (RE) landscape by venturing into its fourth market – the Philippines – via a major solar power project in collaboration with a reputed Philippine conglomerate.
The group’s wholly owned subsidiary KAB Energy Holdings Sdn Bhd has inked the head of agreement (HOA) with LCS Holdings Inc which has extensive expertise in solar energy development.
Under the agreement, KAB Energy and LCS will jointly develop a 20 Megawatts-peak (MWp) solar farm project in Santa Ilocos Sur, Philippines with the potential to expand the project up to 100 MWp.
LCS which is the project owner has secured all necessary contracts and permits for this solar farm project.
This landmark collaboration with LCS adds to KAB’s diverse and robust RE portfolio which includes a variety of solar, hydro and biogas assets. The Philippines is the fourth market for KAB after Malaysia, Thailand and Indonesia.
With a lifespan of 25 years, the project will provide a stable and long-term recurring income for KAB. Energy produced from the project will be exported to retail electricity supplier (RES) or the wholesale electricity spot market (WESM) in the Philippines.
“The signing of this HOA with LCS is a cornerstone in our strategy to broaden our RE initiatives, hence expanding beyond Malaysia into the Southeast Asia market,” KAB executive deputy chairman-cum-group managing director Datuk Lai Keng Onn pointed out.
“This collaboration is not just a business venture; it’s a step towards a sustainable future. We are eager to combine our technical expertise in renewable energy with LCS’s local insights to make this project a benchmark in the industry.”
Meanwhile LCS Holdings chairman Luis Crisologo “Chavit” Singson said the 100 MWp solar power plant is not just a numerical achievement but “signifies our dedication to harnessing the natural power of the sun to meet the energy needs of today without compromising the needs of future generations”.
“This venture not only allows us to address the urgent global call to reduce worldwide carbon emissions but it also fosters economic growth, creates job opportunities and contributes to the well-being of the communities in which we operate,” noted Singson who was also the ex-governor of the Ilocos Su province.
In essence, the project aligns with KAB and LCS’ commitment to reducing carbon footprint and promoting sustainable energy sources. The HOA which lays out the preliminary terms for a joint venture is a testament to the shared vision and commitment of both KAB Energy and LCS towards sustainable and RE solutions.
The agreement which is subject to definitive documentation and due diligence is expected to be formalised soon. Both parties look forward to a fruitful and sustainable partnership that will pave the way for a greener future.
At the close of today’s trading, KAB was unchanged at 40 sen with 13.08 million shares traded, thus valuing the company at RM778 mil. – Jan 19, 2024
