Petaling Jaya, April 20 – Scomi Group Bhd through its wholly-owned subsidiary, Scomi International Private Limited (SIPL) yesterday entered into a Joint Venture Agreement with South Asia Logistics Services Limited (SALS) and Emir Equity Sdn Bhd (EESB).
SALS and EESB are the shareholders of Imartek Sdn Bhd which owns a plant that manufactures core components of hydro turbines and generators.
Under the terms of the JVA, the joint venture company will be pursuing business opportunities specifically focusing on engineering, procurement and construction (EPC) of hydropower plants and wind farms in Asia, including Turkey.
SIPL, SALS and EESB will form a joint venture company (JVCo) in Singapore where Scomi will hold 50 per cent equity. SALS and EESB will inject their equity in Imartek in consideration of 45 per cent and 5 per cent shareholding in the JVCo respectively.
Arising from this, Imartek will become a whollyowned subsidiary of the JVCo. This development is Scomi’s second venture into the renewable energy sector after its solar project that was secured through another joint venture for which the Power Purchase Agreement was signed on 27 March 2017.
This tripartite JVCo will offer integrated solutions for power generation in wind and hydro global markets by combining the parties’ expertise in project management services, design engineering, EPC and commissioning as well as operations and maintenance services of hydropower plants, wind farms and port crane systems.
This partnership further consolidates Scomi’s effort in building a renewable energy portfolio as a new core business. The technology that resides within the JVCo will enable Scomi and its partners to bid for hydro and wind projects.
Both hydro and wind power sectors are projected to enjoy high growth as more countries are reducing dependency on coal and hydrocarbon as energy resources.
Asia remains as the world’s largest untapped hydro potential and will be the focus of countries like China, Indonesia and Pakistan due to its vast natural potential. As for the wind power, by 2030 it is projected to supply 20 per cent of global electricity and attract huge annual investments.
The JVCo will focus on two big markets in the wind sector which are Australia and Turkey. Australia aims to increase its clean power sources to 23 per cent (equivalent to 33,000 gigawatt hours) by 2020 of which wind is identified as a major contributor.