UAC Berhad Signs 20-year PPA with ENGIE on >7 MW Rooftop Solar Array for Factory in Ipoh, Malaysia

ENGIE, a global leader in low-carbon energy and services, and UAC Berhad (UAC), Malaysia’s leading manufacturer of eco-friendly cellulose fibre cement products, today announced they have signed a 20-year solar Power Purchase Agreement (PPA) to govern a rooftop solar array that ENGIE will develop for UAC’s manufacturing plant in Ipoh, Malaysia. The 7.35 megawatt peak (MWp) rooftop solar array will enable UAC to meet 27% of its plant in Tasek Industrial Estate's needs with green energy, saving 7,300 tonnes of CO2 (tCO2) emissions a year. The environmental impact of this project will be equivalent to removing nearly 1,800 cars from the roads (or planting over 100,000 trees).

“Our continued partnership with UAC Berhad exemplifies our commitment to delivering comprehensive solutions that drive sustainable growth for our partners,” said Thomas Baudlot, CEO, ENGIE South East Asia. “We’ve tailored our solutions to meet UAC’s needs, propelling them towards achieving their sustainability goals while increasing their competitiveness. By integrating the provision of multiple services through our utilities-as-a-service (UaaS) approach along with this latest solar deployment, we are enabling UAC to decarbonise their onsite utilities while simultaneously enhancing their operational efficiency,” added Thomas.

This latest milestone in UAC’s sustainability journey comes after a 10-year energy efficiency performance agreement signed with ENGIE in 2023, to revamp and optimise UAC’s steam boiler system. Upon completion, the new steam system will save up to 5,360 tCO2 per year, which is equivalent to the impact of planting close to 90,000 trees.

ENGIE and UAC have been working together to reduce carbon emissions at UAC’s manufacturing plant in Tasek Industrial Estate since 2018. The partnership began with the revamping of the facility’s compressed air system, which led to an 18% increase in the system’s energy efficiency by mid-2019, saving up to 520 tCO2 a year.

The new solar initiative marks an expansion of ENGIE’s support for UAC from providing UaaS into generating green energy. The implementation of all three energy solutions will result in an annual savings of more than 13,000 tCO2, leading to a significant positive environmental impact equivalent to planting over 200,000 trees.

Loon Peng Wai, UAC Berhad’s Deputy Chief Executive Officer, added, “We are thrilled to deepen our collaboration with ENGIE, a trusted partner in our journey towards sustainable manufacturing. Since our initial engagement with ENGIE in 2018, we have witnessed tangible improvements in our energy efficiency and operational reliability, and this new project not only reinforces our commitment to sustainability but also underscores our dedication to driving business excellence.”

The collaboration between ENGIE and UAC is expected to result in savings on energy consumption and cost in alignment with Malaysia’s Energy Efficiency and Conservation Bill passed in 2023, which is aimed at reducing both for industrial and commercial users. Through these sustainable energy initiatives, UAC is showcasing how manufacturers in Malaysia can enhance their operations while also making progress on their sustainability journeys. This latest project further demonstrates both companies' commitment to supporting Malaysia’s Paris Agreement pledge to reduce the country’s carbon emissions by 45% by 2030.

Source: Engie

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