Citaglobal And Tiza Global Ink RM9.75 Billion Solar Farm Deal With Masdar

The initiative, set to unfold in several stages over five years, entails the prospective establishment of up to 2 gigawatts (GW) of renewable energy infrastructure in Pahang.

Citaglobal Bhd, a Malaysian firm, has suggested constructing a MYR9.75 billion solar farm with a capacity of two gigawatts (GW) in Pahang state. Through its subsidiaries, Citaglobal Energy Sdn Bhd, Citaglobal Genetec BESS Sdn Bhd, and Citaglobal Powergen Sdn Bhd, the company entered into a memorandum of understanding (MoU) with Masdar, the Abu Dhabi Future Energy Company PJSC, to collaborate on renewable energy (RE) initiatives.

As part of the agreement, Citaglobal and TIZA will collectively own a 40% equity stake in the project, while Masdar will hold the remaining 60%. The funding for the development costs of the project, to be determined later, will be contributed by the parties in proportion to their respective stakes. This Joint Development Agreement (JDA) was formally executed during the United Nations Climate Change Conference of the Parties (COP 28) in Dubai, United Arab Emirates, in the presence of the UAE President Sheikh Mohamed Zayed Al Nahyan and Sultan Abdullah.

The initiative, set to unfold in several stages over five years, entails the prospective establishment of up to 2 gigawatts (GW) of renewable energy infrastructure in Pahang. The project encompasses the construction of ground-mounted solar arrays, floating solar farms, and battery energy storage systems (BESS) at various locations, including suitable land, dams, lakes, and offshore perimeters across the state.

This 2GW solar farm endeavour is aligned with Masdar’s pledge to implement 10GW of clean energy projects in Malaysia, amounting to a total investment of $8 billion, as formalized through a Memorandum of Understanding (MOU) with the Malaysian Investment Development Authority on October 9.
Masdar serves as the investment entity of the Abu Dhabi government, tasked with generating sustainable economic advantages for Abu Dhabi by focusing on the development of renewable energy.

Citaglobal’s Executive Chairman and President, Tan Sri Mohamad Norza Zakaria, expressed gratitude for the swift conversion of their MOU with Masdar into a binding JDA framework in under six months. He highlighted this as a robust demonstration of the commitment from both parties to ensure the success of Project 2GW. Additionally, he conveyed confidence in achieving accelerated progress toward climate targets and fulfilling Malaysia’s long-term energy needs responsibly and cost-effectively in collaboration with Masdar

Mohamad Norza referred to the initial agreement, the MOU signed on July 27, between Citaglobal and Masdar for the joint development of clean energy projects in Pahang. Following this development, Citaglobal shares rose by one sen or 0.64%, reaching RM1.58, resulting in a market capitalization of RM660.1 million. Sultan Abdullah’s direct stake in Citaglobal stands at 9.91%, as per Bursa Malaysia filings.