B.Grimm Power Malaysia Sdn. Bhd., (“B.Grimm Malaysia”) which is a 100% owned subsidiary of B.Grimm Power Public Company Limited (“B.Grimm Power”), has entered into the agreements to indirectly purchase 40.6% in Pimpinan Ehsan Berhad (PEB) via a direct subscription to 45% shares in reNIKOLA Holdings Sdn. Bhd., a fast-growing pure play renewable energy company based in Malaysia with target to increase renewable portfolio to above 1 GW from current pipeline of more than 500 MW.
Currently reNIKOLA has 88 MW of solar plants in operations and term sheet signed for acquiring another 90MW of solar plants in the near future. Additionally, reNIKOLA also has various MOUs signed with major corporations in Malaysia, to develop a 375MW solar plant under the nascent Third Party Contract (Corporate PPA) framework. reNIKOLA, also has an identified pipeline of prospective solar and small hydro projects which it is pursuing actively.
The promoters and management of reNIKOLA have a strong track record in the recent past of being on the forefront of renewable projects in Malaysia, with some of the firsts being: The first project to reach commercial operation date (COD) under the Large Scale Solar (LSS) bidding system in Malaysia; and the first renewable company in Malaysia to get the approval of Ministry of Energy, Science & Technology for a solar plant under the TPC/”Corporate PPA” scheme.
At the virtual signing ceremony, President of B.Grimm Power Dr. Harald Link said: “We share same values as reNIKOLA, which is to provide clean, reliable and affordable electricity. As such, we see it as the ideal vehicle for us to venture into the energy sector in Malaysia. The country offers many opportunities, particularly in the renewable energy segment. We have plans to develop renewable energy power plants in Malaysia and through this acquisition, we can fast-track our expansion plans in the country and build a sizeable renewable energy asset portfolio together. We are thrilled with all the possibilities and look forward to turning the opportunities into reality expeditiously.”
Chairman of reNIKOLA Tengku Zaiton added: “The participation of B.Grimm Power, which is a respectable world-class energy company, as the significant shareholder of reNIKOLA Holdings validates the direction we are taking, focusing on pure play long term renewable energy or renewable energy assets. We are excited with the huge potential it brings when both parties combine our strengths. We can leverage on B.Grimm Power’s strong expertise and technical know-how in the renewable energy sector. Coupled with the RM367 million cash injection from B.Grimm, we have a strong war chest to seize the tremendous growth opportunities in the renewable energy sector.”
Chairman of PEB Jonathan Law Ngee Song, said: “We have set a clear goal, that is to transform PEB into a leading pure play renewable energy company in the region. We want to build the largest renewable energy asset portfolio in Malaysia. With B.Grimm Power as a significant shareholder in PEB [upon completion of the Proposed Acquisition], we are confident we are on the accelerated path to achieve our goal, and it certainly serves as a booster to our standing and credibility as well. With the support of B.Grimm Power, PEB through reNIKOLA Holdings can play a key role in helping to achieve this target. Moreover, we believe our efforts on the Environmental, Social and Governance or ESG aspect can be further enhanced by the input from B.Grimm Power given its excellent reputation and established track record in this area. All in all, it is interesting times ahead as we embark on the next phase of our corporate journey.”
B.Grimm Power’s Commitment to Net Zero by 2050
This is yet another step by B.Grimm Power towards reaching the goal of Net Zero Carbon emissions by 2050.
Coincidentally Malaysia has also announced its target to reach Net Zero by 2050. It aims to reduce the intensity of greenhouse gas or GHG emission across the economy by 45% based on the GDP by 2030, which is 10% higher than the earlier target.
Currently B.Grimm Power has 737 MW of renewable power plants in operations, consisting of solar projects in Thailand, Vietnam and Cambodia, wind projects and waste-to-energy in Thailand and hydro power projects in Laos. The company also operates a number of solar rooftop projects in Thailand and the Philippines. Additionally, B.Grimm Power currently developing several renewable projects with a total of capacity of 126 MW, including wind project in Poland, hydro power projects in Laos and solar hybrid project in Thailand. The company aims to ramp up its total installed capacity from 3,058 MW at the end of 2020 to at least 7,200 MW of secured PPA by 2025, and to 10,000 MW by 2030 with a targeted annual revenue of more than 100 billion baht.