KAB enters into 20-year PPA with Nextgreen

KUALA LUMPUR: Kejuruteraan Asastera Bhd has entered into a 20-year power purchase agreement (PPA) with Nextgreen Pulp and Papers Sdn Bhd, a subsidiary of Nextgreen Global Bhd.

In a statement, KAB said its wholly-owned subsidiary KAB Core Connect O&M Services Sdn Bhd 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 the rooftops of multiple production plants and buildings at the latter’s Green Technology Park in Pekan, Pahang.

Nextgreen will purchase the solar PV energy generated by the facility.

The solar PV systems, which will be installed in two phases with installed capacities of 2,507 kWp and 880 kWp respectively, are expected to be completed within nine months of the commencement of the installation.

KAB said the solar PV installations will provide 88,789 megawatt hours (MWh) in energy savings and reduce 51,942 metric tonnes of carbon dioxide equivalents (tCO2e) over the next 20 years.

The PPAs are expected to contributed to its financial performance in 2023.

According to KAB managing director Datuk Lai Keng Onn, 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.

"Furthermore, we look forward to future collaborations in providing a wider range of SES expertise, as Nextgreen continues to develop its sustainable Green Technology Park.

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

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KAB , Nextgreen , PPA , solar


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