KUALA LUMPUR (Sept 6): There has been no progress on the US$2 billion (RM9.75 billion) two-gigawatt (2GW) solar farm project in Pahang, under a collaboration between Tenaga Nasional Bhd (KL:TENAGA), Citaglobal Bhd (KL:CITAGLB) and Abu Dhabi Future Energy Company PJSC (Masdar), despite the signing of a memorandum of understanding (MOU) last year.
TNB, through its wholly-owned unit TNB Renewables Sdn Bhd (TRe), signed a two-year MOU with Citaglobal and Masdar on Dec 2 last year, expressing its intention to collaborate on renewable energy projects.
On June 4 this year, Citaglobal stated that all parties were in discussions to reformulate and reposition the potential collaboration on certain identified projects in Pahang, due to the LSS-Energy Transition SuRiA-LSS5 programme, which aims for 2,000MWac capacity as announced by the Energy Commission.
"The board of directors of Citaglobal wishes to inform that there is no material update on the MOU," said the company in a filing on Friday.
To recap, the 2GW solar farm project is part of Masdar’s commitment to implement 10GW of clean energy projects in Malaysia, with a total investment of US$8 billion.
Citaglobal, in which the Sultan of Pahang, Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah, is a substantial shareholder, along with its consortium partner TIZA Global Sdn Bhd, has executed a 40:60 joint development agreement with Masdar.
Under the agreement, Citaglobal and TIZA will hold 40% equity interest in the project, with the remaining 60% held by Masdar. The parties will contribute funding for the project’s development costs — to be determined later — in proportion to their stakes.
The project is expected to be developed in multiple phases over five years, involving up to 2GW of renewable energy in Pahang. It will include the construction of ground-mounted solar arrays, floating solar farms and battery energy storage systems (BESS) across various sites, such as suitable land, dams, lakes and offshore perimeters in Pahang.
At Friday’s closing bell, Citaglobal’s shares rose two sen or 2.04% to RM1, valuing the company at RM425.48 million.