KUALA LUMPUR (July 27): Citaglobal Bhd’s unit has inked a memorandum of understanding (MOU) with UAE-based Abu Dhabi Future Energy Company PJSC (Masdar) to look into jointly developing renewable energy projects in Malaysia.

The execution of the MOU will enable Citaglobal to strengthen the development of a 2GW solar farm (landed and floating) in Pahang that will cater to the local and export renewable energy markets,  the group said in a filing on Thursday (July 27).

Both parties will also explore battery energy storage systems (BESS), as well as wind and other renewable energy technologies in line with the Malaysian government target of meeting net-zero emissions by 2050.

Masdar is an investment vehicle of the government of Abu Dhabi owned by Mubadala Investment Company, Abu Dhabi National Oil Company (ADNOC) Group & Abu Dhabi National Energy Company (TAQA).

The company is active in more than 40 countries and has invested in or committed to investing in projects with a combined value of over US$30bil, with a total capacity of over 20 GW, and is able to offset 30 million tonnes of CO2 emissions annually, said Citaglobal.

Citaglobal’s wholly owned subsidiaries involved in this deal include Citaglobal Energy Sdn Bhd, Citaglobal Powergen Sdn Bhd and its 50:50 joint control company, Citaglobal Genetec BESS Sdn Bhd.

“By collaborating with a leading energy transition player, we will make faster progress towards our climate targets, besides building our long term energy requirements in a responsible and cost efficient manner,” said Citaglobal’s executive chairman and president Tan Sri Mohamad Norza Zakaria

Citaglobal shares fell one sen or 0.73% to RM1.38, valuing the group at RM576.23 million.