Yinson forms JV with clean energy solutions firm to develop 250MW solar projects

KUALA LUMPUR (May 12): Global energy infrastructure and technology company Yinson Holdings Bhd through its subsidiary YR C&I Pte Ltd (Yinson Renewables) is forming a joint venture with Plus Xnergy Holding Sdn Bhd via its wholly-owned subsidiary Plus Xnergy Services Sdn Bhd to develop and implement commercial and industrial (C&I) rooftop solar photovoltaic (PV) projects in Malaysia.

This follows the collaboration agreement signed in August 2021 when both parties expressed their intention to enter into a business alliance to invest and develop up to 250MW of PV C&I projects within and beyond Malaysia.

In a statement on Thursday, Yinson said the joint venture will strategically leverage on the group’s network, worldwide presence and experience in the energy space, as well as Plus Xnergy’s strength as a leading solar PV system provider and engineering, procurement, construction and commissioning (EPCC) contractor in Malaysia.

“With the formalisation of the joint venture, we hope to accelerate the implementation of clean energy in the C&I sector, leveraging on our joint strengths.

“This will reduce energy costs for commercial energy users and lend support to the government’s target of ensuring 40% of the country’s energy capacity is made up of renewable energy generation by 2035,” said Yinson Renewables chief executive officer (CEO) David Brunt.

Plus Xnergy CEO Thang Chee Keong said the company remains confident of meeting the goal of 250MW total installed capacity within five years despite the pandemic and fluctuating demand.

“We are honoured to be furthering our alliance with Yinson through this shareholder agreement. With this in place, we deepen our partnership and joint endeavour towards making both clean and lower costing energy a possibility for businesses in Malaysia and beyond.

“We will also work towards securing projects with multinational companies based in Malaysia, as many have already begun their sustainability and environment, social and governance journeys,” he said.

Thang noted PXA will continue to invest in power purchase agreement (PPA) solutions in order to empower businesses in their journey towards reducing their operating expenditure (opex) whilst switching to cleaner energy.

He said the zero capital expenditure required on the part of businesses has clearly helped its customers make the transition.

“Undoubtedly the rise in energy cost has made this a clearer option. Continued adoption of PPAs will also support national agendas and reforms such as the carbon neutrality goal by 2050,” added Thang.

According to Yinson, three projects have been successfully secured, providing rooftop solar PV systems to the C&I market, with a total value of RM43 million over the PPA tenure to date, with these projects expected to contribute to Yinson Renewables’ growing global pipeline of over 3GW.

Yinson’s share price finished 2.19% or half a sen lower at RM2.23, bringing it a market capitalisation of RM4.92 billion.