Friday 29 Mar 2024
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KUALA LUMPUR (Nov 29): Sapura Energy Bhd has confirmed that it is collaborating with Singapore-based Enterprize Energy Pte Ltd in works related to a wind farm off the coast of Ireland to power a green hydrogen facility.

This follows a Bloomberg report last Wednesday (Nov 24) whereby Enterprize has signed deals with Sapura Energy, one of the two companies to supply articulated wind columns for the project, which is worth US$10 billion.

“Sapura Energy and Enterprize Energy signed a collaboration agreement in August this year, to explore how our engineering and construction expertise may be utilised for the construction of Enterprize Energy’s wind farm project in Ireland. 

“The collaboration is still at an exploratory stage and is part of our effort to deepen our capabilities in renewables and embrace the energy transition. At this point in time, it is too early to comment further on the project,” the company said in an email reply to The Edge on Monday. 

According to the report, Enterprize’s 4-gigawatt wind farm will supply electricity for hydrogen production and consumption in Ireland, or for conversion into ammonia that can be exported, chief executive officer Ian Hatton said in an interview.

Enterprize will also raise money through project financing arranged by Societe Generale SA as well as from private equity investment, Hatton said, as quoted by the report. 

MIDF Research said in a research note dated Nov 25 it believes the recent agreement with Enterprize will increase the valuation level for Sapura Energy in the near future, and possibly clear up the group’s debt and compensate for its previous losses in the longer term. 

"Enterprize is also developing a 3.4GW offshore wind farm in Vietnam and is looking at Brazil for a similar market. The projects are believed to bring low-cost hydrogen to Europe and Japan. Considering the type of collaboration the company has with SEB (Sapura Energy), there’s a high probability of more contracts for wind columns for SEB to win. As such, we opine that the prospect for SEB to venture into the renewables sector of the energy market would assist the company to perform better in the near future," it said.

MIDF kept its "buy" call on Sapura Energy with an unchanged target price of 14 sen.

Sapura Energy shares closed unchanged on Monday at nine sen, with 22.85 million shares changing hands. Its market capitalisation stood at RM1.44 billion.

Edited ByLam Jian Wyn
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