PETALING JAYA: Hibiscus Petroleum Bhd and Seri Pajam Development Sdn Bhd have signed a heads of agreement (HoA) to establish an exclusive framework to evaluate and develop power plant projects and energy solutions on land owned by the latter and its affiliates in Malaysia.
The collaboration identifies SPD Tech Valley in Senawang, Negeri Sembilan, as a strategic industrial location for potential power generation development.
The HoA was signed on Sept 30 by Hibiscus Petroleum managing director Datuk Dr Kenneth Gerard Pereira and Seri Pajam Development CEO Ten Wee Seong.
Hibiscus Petroleum senior vice-president, strategic initiatives Chong Chee Seong said the group’s partnership with Seri Pajam Development is an important step in its transformational journey.
“Data centres and AI workloads need power that is reliable, efficient and increasingly low-carbon. By extending our expertise into distributed power generation, we aim to meet that demand while creating opportunities for additional, more stable revenue streams for our shareholders,” he said.
The potential projects may involve gas turbines, gas engines, solar power and carbon capture systems, as outlined under the HoA.
The collaboration aligns with Hibiscus Petroleum’s Hibiscus 3.0 strategy to diversify into energy transition and adjacent energy businesses while retaining oil and gas as its core business.
Through the initiative, Hibiscus Petroleum aims to strengthen its power-generation capabilities to address Malaysia’s growing electricity demand, particularly from data centres and facilities supporting artificial intelligence (AI) workloads.
With its strategic connectivity and smart, sustainable infrastructure, SPD Tech Valley has been identified as a suitable location for potential data centre developments, which could be supported by a domestic power plant facility.
A potential domestic power plant at SPD Tech Valley could complement the park’s existing grid infrastructure, strengthen its energy resilience, and support future industrial growth as electricity demand rises.
Commenting on the collaboration, Ten said as SPD Tech Valley continues to grow, the company recognise the importance of planning ahead for the energy requirements of high-value industries, particularly data centres and other technology-driven businesses.
“This collaboration with Hibiscus Petroleum allows us to evaluate potential power generation solutions that could support the park’s long-term development. By working with an established energy company, we aim to strengthen SPD Tech Valley’s position as a strategic industrial destination with the infrastructure and connectivity needed to support future investments,” he said.
Strategically located adjacent to 132kV and 275kV national grid infrastructure, SPD Tech Valley is supported by connectivity to the North-South Expressway, LEKAS Highway, Kuala Lumpur International Airport (KLIA) and Port Klang.
These infrastructure and connectivity advantages support the park’s positioning as a location for high-value manufacturing and data centre developments.
The signing of the HoA marks an important step in the collaboration between Seri Pajam Development and Hibiscus Petroleum, with both parties set to evaluate the technical, commercial and implementation requirements of potential power generation projects.