KUALA LUMPUR (Oct 7): Oil and gas services provided Uzma Bhd (KL:UZMA) said its maiden 50-megawatt (MW) large-scale solar 4 (LSS4) project located in Sungai Petani, Kedah has reached its commercial operation date (COD) on Sept 25.
Uzma Kuala Muda Sdn Bhd, the group's indirect wholly owned subsidiary, received the Energy Commission's (EC) no-objection letter on Oct 4, the group's bourse filing on Monday showed.
Uzma Kuala Muda was incorporated by Uzma Environergy Sdn Bhd (Uzma Environergy), Uzma's wholly owned renewable energy arm.
This is followed by an acknowledgment from the Single Buyer on Oct 7.
The plant, located in Ladang Bukit Hijau, Kedah, marks Uzma's first foray into asset ownership and development of a LSS plant under a power purchase agreement with Tenaga Nasional Bhd (KL:TENAGA) signed in August 2021.
The project achieved financial close on July 14, 2023, and started the physical construction in November 2023, Uzma noted.
Uzma group chief executive officer Datuk Kamarul Redzuan Muhamed said the financing journey was "arduous", while noting that it underscores both the group's ability to secure funding and the confidence of financial institutions in the project's value and Uzma’s commitment to advancing environmentally sustainable energy projects.
Meanwhile, Uzma Environergy CEO Mohd Hilmy Abdullah Zawawi said the achievement demonstrates Uzma’s capability to deliver large-scale projects, further enhancing its position in the renewable energy sector.
Uzma anticipates the plant to contribute positively to its future earnings and generate clean energy, reducing approximately 1.8 million tonnes of carbon dioxide (CO2) emissions over its operational life.
Uzma's new energy operating segment, which undertakes solar farm construction and investment, contributed RM9.25 million or 1.3% of the group's RM701.99 million revenue (before adjustments) in the financial year ended June 30, 2024.
The segment posted an operating loss of RM2.17 million, compared with a group operating profit of RM81.53 million after adjustments.
Uzma’s shares closed six sen, or 5.94%, lower at 95 sen on Monday, valuing the company at RM413.56 million.