SD Guthrie JV inks 21-year renewable energy deal for data centres

KUALA LUMPUR: SD Guthrie Bhd’s joint venture has entered into a term sheet for a 21-year renewable energy supply contract with a US-based multinational technology company to power its data centres in Malaysia.

In a filing with Bursa Malaysia, SD Guthrie said G3nerasi Kinta Sdn Bhd (GKinta), in which it has an indirect 33.5% stake, entered into the bilateral energy supply contract (BESC) term sheet on Sept 28 under the Corporate Renewable Energy Supply Scheme (CRESS).

The project involves a hybrid utility-scale solar photovoltaic plant in Perak with a minimum net capacity of 680MWac, supported by a four-hour battery energy storage system (BESS).

“The project is estimated to generate gross revenue exceeding RM10bil for GKinta over the proposed 21-year offtake period,” SD Guthrie said, adding that the commercial operations targeted to begin in 2029.

GKinta is wholly owned by G3nerasi Mutiara Sdn Bhd, a joint venture between SD Guthrie Renewable Energy Sdn Bhd, Gamuda Energy Sdn Bhd and Gentari Renewables Sdn Bhd, with stakes of 33.5%, 33% and 33.5%, respectively.

SD Guthrie said the project is expected to provide stable recurring earnings over the offtake period while expanding its renewable energy footprint into utility-scale infrastructure and energy storage.

The project is expected to be funded through a combination of non-recourse project financing and equity contributions from the consortium partners according to their respective stakes.

The BESC and other relevant agreements under CRESS are targeted for completion by the first quarter of 2027.

SD Guthrie said the project is expected to contribute positively to its future earnings following commercial operations, subject to the execution of definitive agreements, financial close and successful development and operation of the project.