KUALA LUMPUR (Dec 6): Cypark Resources Bhd (KL:CYPARK) is partnering with the Terengganu state government to develop a 500 megawatt (MW) large hybrid hydro floating solar (HHFS) plant at Tasik Kenyir.
In a statement, Cypark said it has signed a heads of agreement for the joint venture (JV) with Terengganu Incorporated Sdn Bhd (Terengganu Inc), the state’s strategic investment arm.
The 500MW HHFS project is the first of its kind in Malaysia, harnessing Tasik Kenyir's water for clean energy generation.
"It will be the single largest site in Malaysia that will combine solar energy production, battery storage, as well as unlocking the potential of Malaysia’s extensive bodies of water," Cypark said.
The JV, it said, will be led by TNB Power Generation Sdn Bhd (TNB Genco), which will design, build and operate the plant. Design for the project is set to begin in 2025.
Terengganu Inc had launched the floating solar farm project, which is expected to generate up to 2,000 megawatts (MW) of electricity, on Sept 11.
At the time, it was collaborating only with TNB Genco for the project. This came after the duo signed a memorandum of understanding (MOU) to undertake the feasibility study for executing the floating solar plant project at the lake back in July 2024.
With the latest agreement, Cypark has come into the picture and will partner Terengganu Inc to work with TNB Genco, according to Cypark's executive director Muhammad Ashraf Muhammad Amir.
“Tasik Kenyir’s unique ecosystem provides the ideal setting for this innovative hybrid renewable energy solution. With solar energy now the most cost-efficient source of energy production, we know our projects will lead to a more efficient and resilient Malaysia,” said Cypark executive chair Datuk Ami Moris.
Terengganu Inc president and group chief executive officer Tuan Haji Burhanuddin Hilmi Mohamed Harun said the partnership underscores the state's commitment to leveraging the state’s natural capital responsibly while driving inclusive and sustainable growth.
Terengganu Menteri Besar Datuk Seri Dr Ahmad Samsuri Mokhtar previously announced that the floating solar farm at Tasik Kenyir is expected to produce 400MW of electricity within the next six months, at an investment of RM2 billion.
Shares of Cypark closed 2.5 sen or 2.8% higher at 90.5 sen on Friday, giving the group a market capitalisation of RM744.66 million. The stock has slipped 4.2% year-to-date.
Over the last six months, Cypark has delivered two of its solar farm projects after years of delay under the previous management.
Last month, the company started operations of its 98MW floating solar farm in Kelantan, after completing its 100MW hybrid solar plant project in Terengganu back in June.