Kuala lumpur: Yinson Holdings Bhd's indirect wholly owned subsidiary Mt Cass Wind Farm Ltd (MCWFL) has entered into a 15-year power purchase agreement (PPA) with Genesis Energy Ltd from its 94.6 megawatt (MW) wind farm located on the South Island of New Zealand.

According to BERNAMA News Agency, Yinson stated in a filing with Bursa Malaysia that the plant to be constructed by MCWFL is valued at RM1.2 billion, with commercial operations expected to commence in the second half of 2028. The company noted that the PPA will not impact the share capital and shareholding structure, but it is anticipated to positively affect the earnings and net assets per share of Yinson's group of companies.

Yinson further highlighted that the main risks associated with the PPA pertain to project execution, such as schedule delays, and operational execution risks related to delivering the required level of power generation to Genesis. These risks are considered inherent in Yinson Group's business and are expected to be mitigated by the company's experience and expertise in the renewables industry, along with internal controls and project execution plans to ensure the fulfillment of the work scope under the PPA.

Genesis Energy is an energy generator and retailer listed on the New Zealand Stock Exchange and Australian Securities Exchange. The company supplies electricity, reticulated natural gas, and liquefied petroleum gas to over 520,000 customers.