KAB inks 20-year solar power purchase agreements with Nextgreen

KAB inks 20-year solar power purchase agreements with Nextgreen
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KUALA LUMPUR (Nov 14): Kejuruteraan Asastera Bhd (KAB) has inked 20-year solar power purchase agreements (PPAs) with Nextgreen Pulp and Paper Sdn Bhd, a subsidiary of Nextgreen Global Bhd.

In a statement on Monday (Nov 14), the engineering and energy solution provider said it had signed two PPAs with Nextgreen to design, construct, install, own, operate, and maintain solar PV systems with total combined capacity of 3,387-kilowatt peak (kWp) on rooftops of multiple production plants and buildings at Nextgreen’s Green Technology Park in Pekan, Pahang.

KAB said Nextgreen will also purchase the solar PV energy generated.

It said the solar PV systems will be installed in two phases, with Phase 1 having an installed capacity of 2,507 kWp, and Phase 2 with 880 kWp.

KAB said the PPAs are expected to contribute to its financial performance in 2023, upon their completion within nine months of installation commencement.

KAB managing director Datuk Lai Keng Onn said the solar PV contracts with Nextgreen are designed to enhance the energy efficiency and sustainability of its manufacturing operations, and support its aspiration of achieving a green economy.

“We look forward to future collaborations in providing a wider range of SES (sustainable energy solution) expertise, as Nextgreen continues to develop its sustainable Green Technology Park.

“This will enable us to contribute as an integral solution provider to Nextgreen’s pioneering model to integrate renewable energy and zero-waste technology for sustainable industries in Malaysia,” he said.

Lai said KAB's sustainable energy solution segment had 11 operational solar PV contracts in Malaysia and Thailand, with a combined installed capacity of 12,931 kWp, as well as co-generation and waste-heat-recovery facilities.

At the midday break on Monday, KAB traded unchanged at 47.5 sen, with 12.08 million shares done, while Nextgreen had dipped 1.91% or 1.5 sen to 77 sen, with 22,400 shares traded.