KUALA LUMPUR: Tenaga Nasional Bhd (TNB), via subsidiary Vantage RE Ltd, is acquiring a 49 per cent stake in an offshore wind farm company Blyth Offshore Demonstrator Ltd (BODL) for an undisclosed amount.
TNB, in an exchange filing today, said Vantage RE had signed a share purchase agreement (SPA) for the acquisition with EDF Renewables, which is a unit of French utility company Électricité de France (EDF).
President and chief executive officer Datuk Ir. Baharin Din said the acquisition was one of the planned strategic acquisitions for TNB to accelerate its journey in delivering on its global environmental, social and governance (ESG) vision.
TNB recently announced its Sustainability Pathway blueprint with an aspiration to achieve net zero emissions by 2050.
"The pathway is underpinned by our commitment to reduce 35 per cent of TNB's emissions intensity as well as 50 per cent of our coal generation capacity by 2035," Baharin said in a statement.
EDF Group (renewable energies) senior executive vice president and EDF Renewables chairman and chief executive officer Bruno Bensasson said the group was committed to contributing to the sector technological evolution and competitivity, being as an international low carbon energy leader.
"We are very pleased to seal this partnership with TNB on Blyth, a United Kingdom (UK) demonstrator site dedicated to offshore wind energy solutions. TNB and EDF share the same ambition to contribute to a low carbon society.
"Therefore, beyond this first partnership, we envisage further cooperation on low carbon electricity generation in the European continent, as Blyth, and in Asia," he added.
TNB said Vantage RE was launched on July 1 this year to own, operate and manage the group's portfolio of renewable energy (RE) assets in Europe.
It added the acquisition marked TNB's maiden entry into the international offshore wind market as BODL currently owns offshore wind assets off the coast of Blyth in Northumberland, England.
The assets include five turbines with a total installed capacity of 41.5MW (Blyth 1) and further development rights for a floating offshore wind project of up to 58.4MW (Blyth 2) located off the Northumberland coast.
The five 8.3MW turbines of Blyth 1 are installed with gravity-based foundations, which use a concrete load to keep the turbines securely in place without penetrating the seabed.
The wind farm has been in operation since 2017 under the Renewable Obligation Certificates (ROC) subsidy regime that is expected to provide stable revenues.
Blyth 2 is an innovative floating offshore wind project currently in the early stage of development.
Baharin said TNB shares the aspiration with EDFR's long-standing know-how and expertise in developing and operating major renewable energy projects.
"We continue to drive sustainable development for its stakeholders by delivering reliable and affordable energy, embracing innovation and the energy transition as well as providing future generations with the means to power their lives in the most economic, environmental and socially responsible ways possible."
Baharin said TNB aimed to grow its RE capacity to 8,300MW by 2025, while acknowledging the partnership would give the group an edge in an increasingly competitive industry as it rapidly scale up its global RE portfolio and strengthen its position in the future energy landscape.
He said the strategic partnership would also allows the group to fully benefit from EDF Renewables' extensive experience in the offshore wind sector across TNB's focus markets, mainly in the UK, Europe and Southeast Asia.
"It not only sets the pace for Vantage RE to grow in the UK and Europe, but also provides a solid pathway for TNB to accelerate its ambition to be a leading provider of sustainable energy solutions," he added.
TNB has been investing in the UK's solar and wind sectors since 2017 and with the latest addition, it will also be operating close to 450MW of RE investments (wind and solar farms) in the country.