Abu Dhabi clean energy company Masdar and Malaysia’s Citaglobal have signed an initial agreement for the joint development of renewable energy projects worth 2 gigawatts.
The projects, which will be in Pahang on the east coast of Malaysia, will include clean energy technologies such as solar, battery energy storage, and wind, Masdar said on Monday.
“Masdar is excited to be partnering with Citaglobal Berhad and to be expanding our presence in the key South-East Asian market,” said Mohamed Al Ramahi, chief executive of Masdar.
“We look forward to pioneering energy solutions to reduce emissions in Malaysia and the region.”
Malaysia has set a target of renewable energy providing 31 per cent of the nation’s energy needs by 2025 and 40 per cent by 2035.
The government has pledged to raise renewable energy capacity to 70 per cent by 2050, aligning with the country's net zero goals.
“By collaborating with a leading energy transition player, we will make faster progress towards our climate targets, besides building our long-term energy requirements in a responsible and cost efficient manner,” said Mohamad Zakaria, executive chairman and president of Citaglobal.
The agreement will also foster “potential” collaboration between Masdar and Citaglobal related to technology solutions and equipment supply outside of Malaysia, with a focus on Central Asia, he added.
Masdar has a presence in South-east Asia, a region where significant growth in energy demand over the next few decades is anticipated.
In February, Masdar invested in Indonesia's Pertamina Geothermal Energy (PGE), marking its entry into the country’s geothermal energy sector, the largest after the US.
Last year, the company formed a joint venture with Jakarta-based Mitrabara to provide renewable energy solutions.
In 2020, Masdar formed a joint venture with PT PJBI, a subsidiary of Indonesia’s state electricity company, to develop the country’s first floating solar project, which is also one of the largest in the world.
Established in 2006, Masdar has taken a leadership role in the global clean energy sector and has helped to drive the nation’s economic diversification and climate action.
It is active in about 40 countries and has invested or committed to invest in projects worth more than $30 billion.
This month, Masdar raised $750 million through a green bond as part of a programme to raise up to $3 billion to meet the company's equity funding commitments on new renewable energy projects in the UAE and overseas.
Last week, the company joined Spain’s Iberdrola to invest in a 476-megawatt offshore wind farm in Germany.
The Baltic Eagle wind farm, located in Germany's waters in the Baltic Sea, is valued at about €1.6 billion ($1.76 billion). Iberdrola, which will retain a majority 51 per cent stake in the wind farm, is expected to control and manage the asset.