PETALING JAYA: Hibiscus Petroleum Bhd
plans to develop power generation capacity in phases to meet data centres’ electricity needs, as it seeks to establish a power generation business beyond its core oil and gas operations, with gas-fired generation among the options being assessed.
Founder and managing director Datuk Dr Kenneth Gerard Pereira said the group is already in active discussions with prospective customers for power supply at SPD Tech Valley in Senawang, Negeri Sembilan, under its partnership with property developer Seri Pajam Development Sdn Bhd (SPD).
“For data centre operators, securing power is often the critical path item, and dedicated on-site generation will help accelerate their development plans, given the current capacity allocation and interconnectivity bottleneck from the grid,” Pereira told StarBiz.
The partnership will evaluate and develop power plants and energy solutions for data centres and industrial developments, with SPD Tech Valley identified as the first strategic site. Its infrastructure and connectivity make it a potential location for data centres supported by on-site power generation.
The collaboration will assess gas turbines, gas engines, solar power and carbon capture systems on land owned by SPD and its affiliates, as the government reviews requirements for data centre investments, including on-site power supply.
“We are following the development regarding the government's ongoing review of investments from data centres. We note that the evaluation of data centre applications are being done by the Data Centre Task Force against a set of criteria, and that dependable access to power is a key consideration for new developments. The collaboration with SPD is aligned with this direction.”
According to Pereira, Hibiscus will lead the development of the power plants and intends to operate them over the long term, drawing on its experience operating oil and gas assets in Malaysia, Brunei, Vietnam and the United Kingdom. “We will coordinate with our established technical partners, combining project delivery expertise with gas turbine and gas engine technologies.
“For data centre customers, that means a single accountable operator focused on availability, safety and consistent performance over the life of the contract.” On how the plant would operate, Pereira said it could supply a single large customer, or serve several users within an industrial park.
“It may or may not connect to the national grid.” Fuel for the power plants is expected to come from Peninsular Malaysia’s existing gas pipeline network.
Pereira said the collaboration forms part of Hibiscus’ 3.0 strategy to diversify into power generation and build more stable, longer-term income streams alongside its core oil and gas business. The proposed venture would allow the group to broaden its presence in the energy value chain, although the revenue model and commercial arrangements for the projects have yet to be finalised.
“The recent Heads of Agreement (HoA) provides a framework for evaluating and developing the projects, with the scope, configuration and capacity of each to be determined through further studies. Project value will depend on customers’ power demand, the technology mix and the pace of development.” Pereira said data centres’ power requirements typically rise in phases as facilities are built out and occupancy grows. Hibiscus therefore intends to tailor power solutions to actual customer demand rather than build capacity speculatively.
“Our approach will be modular: we start with what early customers need and add capacity as demand grows, allowing them to accelerate the start of commercial operations.
“The HoA also covers land owned by SPD and its affiliates elsewhere in Malaysia, allowing us to explore similar projects at other suitable sites as demand develops,” he adds.
