KUALA LUMPUR (Sept 18): Citaglobal Bhd has entered into a memorandum of understanding (MOU) with China government-linked Shanghai SUS Environment Co Ltd (SUS), with a RM15 billion investment commitment from SUS for joint collaboration and development of waste-to-energy (WTE) projects in Malaysia.

This confirmed a report by The Edge weekly in its latest edition that Citaglobal was expected to sign a new MOU for WTE venture as its management strives to expand the group further.

The MOU’s purpose was to formalise the intention of both parties to explore potential collaboration and assess the feasibility of developing WTE power plants primarily in Malaysia, according to Citaglobal’s stock exchange disclosure on Monday.

Citaglobal said the plan is to divert all waste from unsustainable landfills to WTE plants and holistically resolve waste disposal problems in Malaysia.

The group said this collaboration, if it materialises, will be in line with boosting Malaysia’s renewable energy capacity target from 40% in 2035 to 70% by 2050, as announced in the National Energy Transition Roadmap in July 2023.

Following the execution of this MOU, which is effectively immediately, Citaglobal said it will assume a leading role in the project development of the proposed WTE projects in Malaysia, while SUS will be responsible for financing, building and operating these plants.

SUS is an urban solid waste treatment group incorporated in China, which tops the list of world’s largest environment polluters.

The signing ceremony was held during the 20th China-Asean Expo and China-Asean Business and Investment Summit in Nanning, China, witnessed by leaderships of both parties as well as several members of Malaysian Cabinet, including Prime Minister Datuk Seri Anwar Ibrahim, Minister of Investment, Trade and Industry Malaysia Tengku Datuk Seri Zafrul Abdul Aziz, Minister of Local Government Development Nga Kor Ming and Deputy Minister of Agriculture and Food Security Chan Foong Hin.

Citaglobal disclosed that SUS is a government linked enterprise incorporated in China, with “extensive” experience in urban solid waste treatment, eco-industrial park construction, WTE engineering, procurement, construction, operations and maintenance, agricultural and forestry waste treatment and other fields.

“Together with its Japanese partner, global clean technology giant Hitachi Zosen Corporation, SUS has delivered more than 1,400 WTE plants globally,” said Citaglobal.

Citaglobal’s executive chairman and president Tan Sri Mohamad Norza Zakaria said waste management is crucial for the country as most cities are running out of landfill sites.

“WTE systems not only provide a high value source of renewable energy, but more importantly, its ability to convert waste into ash can significantly reduce the volume of waste that ends up in landfills,” he said.

“We see the development of WTE systems as an overall win-win situation for Malaysia. Besides complementing fossil fuel-based power sources, WTE systems generate renewable energy, reduce landfill requirements, and produce revenue for local municipalities and governments,” said Norza.

Meanwhile, SUS CEO Cindy Li Haiyan said with the company’s track record, it is confident in delivering a “modern, clean and efficient” WTE plant for Malaysians.

“In Malaysia, 38,000 tonnes of solid waste are collected daily and dumped at landfills that occupy 150 acres of land yearly. The Malaysian government has acknowledged this pressing need and has been planning on implementing one WTE plant in every state,” she said.

Citaglobal’s shares were trading one sen or 0.7% higher at RM1.45 at market break, giving it a market capitalisation of RM605.51 million.

https://www.theedgemarkets.com/node/682915