KUALA LUMPUR: Kinergy Advancement Bhd has formalised a partnership with Thailand’s B.Grimm Power Public Company Ltd (B.Grimm Power), one of Asean’s most established conglomerates.
Under the agreement, B.Grimm Power will invest RM41.52 million to acquire a 49% stake in JATI Cakerawala Sdn Bhd (JCSB), Kinergy’s investment vehicle for the newly built gas turbine plant.
Kinergy retains a 51% controlling interest in JCSB.
The partnership extends beyond the project execution milestone, marking Kinergy’s evolution from a pure engineering, procurement, construction and commissioning (EPCC) contractor into an independent power producer (IPP), carving out a strategic niche while establishing a platform for longer-term collaboration with B.Grimm Power across selected energy opportunities.
Set against B.Grimm Power’s publicly articulated plans to invest more than RM4.3 billion in Malaysia’s renewable energy and power sectors and its established regional renewable track record, the project forms the foundation of a broader technical and investment relationship.
This project also reaffirms Kinergy’s official entry into the IPP space, placing the group alongside established Malaysian power producers such as Malakoff Corporation Bhd and YTL Power International Bhd, while standing out as the only sub-RM1 billion stock with IPP exposure.
The Kinergy-led consortium – where B.Grimm Power strengthens the platform through its IPP-scale technical, engineering, and operating expertise and is tasked with developing a new combined-cycle gas turbine (CCGT) power plant.
Kinergy executive deputy chairman and group managing director Datuk Lai Keng Onn said infrastructure is a long-term commitment, as developing a national asset that must operate reliably for decades requires careful partner selection.
“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,” he said in a statement.
From Kinergy’s perspective, the project is structured to sustain earnings across the asset lifecycle.
During the construction period, the group expects to participate in EPCC activities, leveraging its experience in gas-fired power projects to capture value through execution.
Once the plant is up and running, the project is expected to generate steady, recurring income under the IPP model.
The electricity generated will be sold to Tenaga Nasional Bhd (TNB) 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 the end of 2029.
