PESTECH Inks MOU with French Firm For Green Hydrogen Projects
PETALING JAYA: PESTECH International Bhd has entered into a memorandum of understanding (MoU) with Paris-listed Hydrogène De France SA (HDF Energy) in relation to a potential collaboration on green hydrogen production from hydro power plants in Cambodia and Malaysia, in order to address multi sectors decarbonation such as among others, grids services and industrial application.
PESTECH is a Malaysian integrated electrical power technology company with its core business in the design, procurement, construction, installation and commissioning of high voltage and extra high voltage substations, transmission lines as well as underground and submarine power cable systems for electricity transmission and distribution. PESTECH is also specialising in the provision of comprehensive solution for photovoltaic power plant and sustainable power infrastructure development.
Under the MoU, the parties will co-operate jointly for the development works with respect to the projects in the region of Malaysia and Cambodia as an initial phase. Due to its pioneer role in hydrogen, HDF Energy will take the lead on the project development scopes and sizing.
PESTECH will take the role of local market liaison, and coordination, in synergies with HDF Energy. PESTECH will also be given the first right of refusal for the engineering, procurement, construction, and commissioning works subject to terms and conditions to be determined at a later stage on a project-by-project approach. The first right of refusal will depend of bankability criteria to be confirmed at later stage by international and local lenders.
“The MoU between the parties will allow PESTECH to initiate its commitment towards contributing sustainable development through participation in green renewables initiatives. Hydrogen is one of the leading options for storing renewable energy in power generation and can become an alternative fuel for sustainable transportation by providing clean, reliable, safe, convenient and affordable energy. The collaboration with HDF Energy on green hydrogen production is expected to complement and align with the global transition for sustainable energy and net zero emissions in the power generation and rail electrification segments,” PESTECH said in a stock exchange filing today.
HDF Energy is a global pioneer in hydrogen energy. The company develops high-capacity hydrogen-power plants and is active in its operation. These plants will provide continuous or on-demand electricity from renewable energy sources (wind or solar), combined with high power fuel cells supplied by HDF Energy.
The MoU will remain in effect for three years. It is expected to contribute positively to the future earnings of PESTECH group, if the collaboration between the parties is successful.