METRONIC Global Bhd has entered into a memorandum of agreement (MOA) with Earthtech Energy Sdn Bhd (formerly Dehui Energy (M) Sdn Bhd) to regulate their working relationship in the formation of a joint venture (JV) for the solar power purchase project.
Through the JV, Metronic and Earthtech will jointly operate the solar power procurement plan, including the installation of solar power equipment.
According to the MOU between both parties, Earthtech would be responsible to identify, secure and commence feasible projects on commercial buildings which both JV parties agreed on.
“Our maiden project would have a power generation capacity of between 19 to 20MW (megawatts) in a commercial building,” commented Metronic’s CEO-cum-executive director Hoo Wai Keong.
“Thereafter, we plan to install up to a total capacity of 100MW over the next three years. Total project cost would be around RM300 mil. Revenue is expected to hit RM45 mil per annum based on 25-years power purchase agreements with owners of commercial buildings.
The JV in which Metronic holds a 70% stake (Earthtech portion is 30%) will translate into a total revenue of RM1.125 bil over the next 25 years.
Metronic will secure the funding needed for the said project and also to assist with management of the project, while Earthtech would provide the technology know-how.
Earthtech is a member of the multinational group Dehui Group, a comprehensive green energy group which operates all over the world, including China, Vietnam, Germany, the US and Malaysia.
As an emerging force in the renewable energy industry, Dehui Group is passionate about building a vertical supply chain including solar cells, PV modules, energy storage systems, energy management software solutions and project development to share value for a green future.
Dehui Group’s state-of-the-art solar PV Modules production facilities is based in Vietnam’s Bac Ninh Province.
The factory covers an area of 250,000 sq metres, employs 700 skilled workers, and has five production lines to produce 350MW solar cells and 1.2GW (gigawatt) of photovoltaic modules.
In 2019, Dehui Group shipped over 300MW to the US. Its annual shipments to US are forecast to be 1GW in 2020, 2021 (2GW) and 2022 (3GW).
At the close of today’s trading, Metronic Global was unchanged at 7 sen with 43.4 million shares traded, thus valuing the company at RM146 mil. – July 2, 2021
