KUALA LUMPUR: Kinergy Advancement Bhd
has entered the independent power producer (IPP) space after agreeing to dispose of a 49% stake in JATI Cakerawala Sdn Bhd, its investment vehicle for a proposed full-new built gas turbine power plant, to Thailand's B.Grimm Power Public company Limited for RM41.52mil.
Kinergy, which has a 51% controlling interest in JATI, says the partnership is tasked with the development of a new Combined-Cycle Gas Turbine (CCGT) power plant. It will benefit from B.Grimm Power's IPP-scale technical, engineering and operating expertise, said the company in a statement.
The partnership also gives Kinergy a platform for longer-term collaboration with B.Grimm Power.
"B.Grimm’s decision to invest at this early stage reflects a shared view on the long-term value of the site and the discipline required to develop it properly.
"For Kinergy, this marks a clear step from executing projects for others towards building and owning assets with lasting value," said Kinergy executive deputy chairman and group managing director Datuk Lai Keng Onn.
The electricity generated will be sold to Tenaga Nasional Bhd under a power purchase agreement (PPA), which is expected to be finalised by the third quarter of this year. EPCC works are slated to commence in the first quarter of 2027, setting the stage for Phase 1 commercial operations by end-2029.
