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In a landmark collaboration aimed at advancing sustainability efforts, ENGIE, a prominent global player in low-carbon energy and services, has inked a 20-year solar Power Purchase Agreement (PPA) with UAC Berhad (UAC), Malaysia’s leading manufacturer of eco-friendly cellulose fibre cement products. The agreement will govern the development of a 7.35 megawatt peak (MWp) rooftop solar array for UAC’s manufacturing facility in Ipoh, Malaysia, set to significantly reduce carbon emissions.
The rooftop solar array is poised to supply 27% of the energy needs of UAC’s plant located in the Tasek Industrial Estate, resulting in an annual reduction of 7,300 tonnes of CO2 emissions. This substantial environmental impact is tantamount to removing nearly 1,800 cars from the roads or planting over 100,000 trees.
Thomas Baudlot, CEO of ENGIE South East Asia, emphasized the partnership’s commitment to delivering sustainable solutions tailored to UAC’s requirements. He highlighted the integration of multiple services through the utilities-as-a-service (UaaS) approach, coupled with the solar deployment, as pivotal in driving UAC’s sustainability agenda while enhancing operational efficiency.
The collaboration between ENGIE and UAC extends beyond the solar initiative. In 2023, both entities entered a 10-year energy efficiency performance agreement aimed at revamping and optimizing UAC’s steam boiler system, poised to save up to 5,360 tonnes of CO2 annually, equivalent to planting close to 90,000 trees.
Since their initial engagement in 2018, ENGIE and UAC have been working in tandem to reduce carbon emissions at UAC’s manufacturing plant. The partnership commenced with the revamping of the facility’s compressed air system, resulting in an 18% increase in energy efficiency by mid-2019 and savings of up to 520 tonnes of CO2 annually.
The latest solar initiative marks an expansion of ENGIE’s support for UAC, transitioning from providing utilities-as-a-service to generating green energy. With all three energy solutions in place, an annual savings of over 13,000 tonnes of CO2 is projected, equivalent to planting over 200,000 trees.
UAC Berhad’s Deputy CEO, Loon Peng Wai, expressed enthusiasm about deepening collaboration with ENGIE, emphasizing tangible improvements in energy efficiency and operational reliability since the initial engagement in 2018. He highlighted the significance of the new project in reinforcing UAC’s commitment to sustainability and driving business excellence.
The collaboration aligns with Malaysia’s Energy Efficiency and Conservation Bill passed in 2023, aimed at reducing energy consumption and costs for industrial and commercial users. Through sustainable energy initiatives, UAC sets an example for manufacturers in Malaysia, simultaneously enhancing operations and advancing sustainability goals.
This partnership underscores both companies’ commitment to supporting Malaysia’s pledge under the Paris Agreement to reduce carbon emissions by 45% by 2030, highlighting the pivotal role of private sector collaboration in achieving national sustainability targets. |
