UEM Group, HEXA Renewables and ITRAMAS forge powerful alliance for green energy

SHAH ALAM - UEM Group Berhad, through its wholly-owned subsidiary and green industry arm, UEM Lestra Berhad, along with HEXA Renewables Malaysia Sdn Bhd and ITRAMAS Corporation Sdn Bhd, has announced significant progress in the development of a one-gigawatt (1GW) hybrid solar power plant.

Initially announced by the government in July 2023, this project is a key venture under the National Energy Transition Roadmap (NETR).

Following a Memorandum of Understanding (MoU) signed on July 27, 2023, the companies have made strides within six months, culminating in agreements to develop the first 500-megawatt (500MW) hybrid solar power plant in Segamat, Johor.

The agreements include a shareholders agreement forming a joint venture company called Lestra Hexa JV Sdn Bhd, with 51 per cent ownership by UEM Lestra and 49 per cent by HEXA Renewables.

A technical partner agreement was also established between Lestra Hexa JV and ITRAMAS, whereby ITRAMAS will provide technical services for the development of the project.

UEM Lestra's Chairman and Managing Director Datuk Mohd Izani Ghani, HEXA Renewables' CEO Vince Choi, and ITRAMAS' Group Managing Director Lee Choo Boo, represented their respective companies during the signing.

Izani expressed satisfaction with the progress, highlighting the formalisation of partnerships, securing suitable land, and positive engagements with potential off-takers for the first 500MW.

"We're off to a good start in realising this strategic and high-value national flagship energy transition project.

"In addition to formalising our partnerships with HEXA Renewables and ITRAMAS, we have also secured suitable land in Segamat, Johor that will house the 500MW hybrid solar power plant.

"I'm pleased also to share that engagements with potential off-takers for the first 500MW solar power plant have been positive, and we will be firming up the details in the coming months.

"In addition, we will be working with the government on the details of the Third Party Access (TPA) framework that will enable this project to go live," he said in a statement today.

On the remaining 500MW, he said that discussions between UEM Lestra and its other partners are ongoing, and an update will be provided in the near future.

Commenting further, Vince Choi of HEXA Renewables highlighted excitement and confidence in achieving Malaysia's NETR goals, while Lee Choo Boo of ITRAMAS described the project's progress as a source of enthusiasm and a significant contribution to Malaysia's energy landscape.

"We are extremely excited to have reached another significant milestone towards realizing this monumental project of Malaysia's NETR.

"The team has been working relentlessly to come this far and will continue to leverage our collective strengths and experience in developing and executing projects of this scale.

"We are confident the project, along with other NETR initiatives, will blaze the trail of making Malaysia the renewable energy hub of South-East Asia," he said.

This was further echoed by ITRAMAS’ Lee Choo Boo, who said the progress of this project is a source of great enthusiasm for the entire team at ITRAMAS.

"It's a milestone we have been eagerly working towards.

"The development and finalisation of the TPA framework, along with our engagements with potential off-takers, are pivotal in shaping our project's immediate impact, transitioning our plans into action.

"This collective commitment is poised to make a significant, tangible contribution to Malaysia's energy landscape," he said.