UEM LESTRA, ACWA POWER SIGNS PARTNERSHIP AGREEMENT, TO CONDUCT FEASIBILITY STUDY AND DEVELOP INDEPENDENT WATER AND RENEWABLE POWER PLANT FACILITIES IN MALAYSIA
The facilities will utilise Sea Water Reverse Osmosis desalination technology and targeted for industrial use
KUALA LUMPUR, 12 March 2025 - UEM Lestra Berhad (UEM Lestra), a wholly-owned subsidiary and green industries arm of UEM Group Berhad (UEM Group), has signed a strategic partnership agreement with Saudi Arabia’s ACWA Power to conduct a feasibility study and jointly develop renewable Independent Water and Power Plant (IWPP) facilities in Malaysia.
Under the agreement, ACWA Power – the world largest private company in water desalination, leader in energy transition, and first mover in green hydrogen and which has 101 projects and assets across 14 countries – will undertake a feasibility study together with UEM Lestra as well as explore the setting-up of renewable IWPP facilities and the use of Sea Water Reverse Osmosis (SWRO) technology in the country.
The feasibility study is anticipated to take between six to twelve months and will amongst others look at desalination plants capable of producing between 200,000 to 400,000 cubic meters of water daily meant for industrial use. The study will also focus on incorporating IWPP facilities with either combined cycle gas turbine (CCGT) solutions, large-scale solar farm (ground or floating) equipped with Battery Energy Storage System (BESS) or a combination of both.
The strategic partnership agreement was signed today by UEM Lestra’s Chief Executive Officer Harman Faiz Habib Muhamad and Chief Development Officer, Rashidi Hazrin Harun with ACWA Power’s Chief Investment & Development Officer, Thomas Brostrom and Mathew Chandapillai, Country CEO of ACWA Power in Malaysia. The signing was witnessed by Datuk Hisham Hamdan, Chairman of UEM Group, Datuk Amran Hafiz Affifudin Chairman of UEM Lestra and ACWA Power’s Regional Vice President, Salman Baray. Also present was Tan Sri Azman Mokhtar, Senior Advisor to the Chairman of ACWA Power for Malaysia.
Harman Faiz said, “This partnership marks a significant step towards delivering sustainable industrial-grade water supply and power in Malaysia and if implemented it has the potential to further attract manufacturing and data centre-type of Foreign Direct Investment (FDI) into the country. We are committed to working alongside ACWA Power to ensure the successful implementation of these facilities, which will not only address the increasing industrial demand for water resources but also align with Malaysia’s ambitious renewable energy objectives."
From ACWA Power’s part, Thomas Brostrom assured, “Our collaboration with UEM Lestra underscores our commitment to delivering sustainable energy and water solutions. By harnessing ACWA Power’s global expertise in renewable infrastructure and advanced technologies like Sea Water Reverse Osmosis, we are addressing Malaysia’s industrial water needs while contributing to the nation’s green infrastructure development. This partnership supports Malaysia’s sustainability goals, attracts foreign investment, and sets a benchmark for innovative, future-ready utilities.”
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