Malaysian player targets 2 GW renewables portfolio for Australia

Engineering, property and infrastructure giant Gamuda said the next step in its Australian growth plans will see it target the renewable energy sector with the long-term goal of being a leading end-to-end developer-builder-owner of clean energy assets.

Gamuda said it will also bid for major EPC (engineering, procurement and construction) contracts in solar, wind, pumped hydro and transmission network upgrades and expansion.

Gamuda Chief Executive Officer Ewan Yee said the company, which in Australia has already secured three major road and rail projects worth a total of $4.5 billion (USD 2.93 billion), is ready to take the next step to diversify and grow its business in Australia.

Yee said the target is to achieve a $2 billion revenue in the next five years from energy projects alone.

“Our vision is to become a leading sustainable energy contractor and a key equity partner for the long term with a particular focus on solar, wind, pumped hydro and transmission,” he said.

“This vision builds upon our ongoing success in the Australia infrastructure market and is informed by our energy and water infrastructure experience across a number of projects globally.”

“We also see our demonstrated key strengths in completing complex large-scale linear construction, tunnelling, hydro and geotech in Australia as highly suited to now transition to energy projects.”

Yee said the Gamuda will fast-track and derisk its plans by establishing relationships with international partners capable of providing technical expertise, resources and a secure supply of components, including solar panels and transmission towers.

Gamuda already has a shareholding in Malaysian solar contracting company ERS Energy that it said provides access to a “robust PV supply chain”.

Gamuda Chief Strategy and Growth Officer Jarred Hardman said the shift in focus comes after the company identified an opportunity for a “ready to go” solution to meet the huge need to fast track energy projects to meet Australia’s renewable targets.

“Australia is transitioning towards 82% of total electricity generation being renewable by 2030 which remains a huge challenge considering currently only around 39.4% of our power comes from renewables,” he said.

“By looking to acquire development rights to shovel-ready projects we can construct and own in solar and wind, while we also secure EPC contracts in transmission and pumped hydro, our goal is to provide an end-to-end solution to fast-track energy projects and quickly gain a foothold, in keeping with our strategy in infrastructure which has seen us build a $4.5 billion workbook within two to three years.”