UEM Group Bhd has secured majority shares in Cenergi SEA Bhd, a sustainable energy solutions company, from sovereign wealth fund Khazanah Nasional Bhd, and plans to grow its new subsidiary’s renewable energy (RE) business.
The group said Cenergi, incorporated in 2008, specialises in reducing carbon footprint through investment in RE, specifically biogas, biomass and solar, as well as energy-efficiency projects, and is Malaysia’s largest grid-connected palm oil mill effluent biogas player.
UEM Group in a statement on Wednesday (Aug 16) also said that Cenergi had a portfolio of 23 biogas power plants in Malaysia and Indonesia, with a total generation capacity of 39.6 megawatts (MW) and 20 solar projects across Malaysia, consisting of both solar farms and rooftop solar, with a cumulative capacity of over 37.6 MW peak.
At present, Cenergi has in the pipeline biogas, rooftop solar and solar farm projects that are under construction and development in Malaysia. In addition, its subsidiary Cenergi EE Holdings Sdn Bhd was recently allotted a 29.99MW alternating current quota under the Energy Commission’s Corporate Green Power Programme.
UEM Group managing director Datuk Mohd Izani Ghani commented that Cenergi had a commendable track record with projects and presence across the country.
“We see immense potential in this company, and are committed to nurturing as well as providing the necessary expertise, operational and financial support that will enhance its operational capabilities, secure more projects, and usher in a new era of growth.
“Cenergi is a key asset of UEM Group, and our goal is to ultimately position it as a green domestic champion to contribute significantly to Malaysia’s sustainable future,” he said.
The group also shared that from August 2012 to May 2023, Cenergi via its various operating assets and investments had avoided over 2.4 million tonnes of carbon emissions, which translated into removing approximately 547,762 passenger vehicles from the road, or powering 310,234 homes for a year.
Mohd Izani pointed out that RE is one of the key sectors and immediate priorities of UEM Lestra Bhd, the green industries arm and a wholly owned subsidiary of UEM Group, due to the sector’s strong market attractiveness and high importance to Malaysia’s decarbonisation agenda.
“Cenergi’s inclusion in UEM Group will further promote strategic complementarity among our subsidiaries across different core businesses. By leveraging the expertise and strengths of each of our subsidiaries, we will be able to create synergistic business opportunities for the group as a whole,” he added.