Kuala lumpur: Kinergy Advancement Bhd has formalised a strategic partnership with Thailand's B.Grimm Power Public Co Ltd, which will be investing RM41.52 million to acquire a 49 per cent stake in Kinergy's investment vehicle, Jati Cakerawala Sdn Bhd, for a proposed full-new built gas turbine power plant. In a filing with Bursa Malaysia today, Kinergy said it will retain a 51 per cent controlling interest in Jati.

According to BERNAMA News Agency, the partnership marked the group's evolution into an independent power producer (IPP) from an engineering, procurement, construction and commissioning (EPCC) contractor. 'The Kinergy-led consortium, where B.Grimm Power strengthens the platform through its IPP-scale technical, engineering and operating expertise, is tasked with the development of a new combined cycle gas turbine (CCGT) power plant,' it stated.

Kinergy said that work on the plant is expected to commence in the first quarter of 2027, setting the stage for Phase 1 commercial operations by the end of 2029. Kinergy's executive deputy chairman and group managing director Datuk Lai Keng Onn emphasized the importance of choosing the right partner when developing a national asset that must operate reliably for decades.

He noted, '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.'

Kinergy further mentioned that during the construction period, it expects to participate in EPCC activities. "Over the longer term, after the plant is commissioned, the project is intended to contribute stable, recurring income under the IPP model," it added.