UOB reiterates support for transition to cleaner energy

United Overseas Bank (M) Bhd (UOB Malaysia) has reiterated its commitment to help the country’s transition to cleaner energy by supporting power plants with lower environmental impact and financing natural gas and solar projects.

In a statement, UOB Malaysia said the bank is a co-financier in a Commodity Murabahah Term Financing-i facility for the recently-announced 1,200 megawatt combined-cycle gas turbine power plant in Pulau Indah, Selangor.

“Upon completion in 2024, the power plant is expected to meet the demand in the Klang Valley in a more sustainable manner because a natural gas power plant has higher energy efficiency and emits 50% to 60% less carbon dioxide per kilowatt-hour than a typical coal plant,” it said.

UOB Malaysia managing director and country head of wholesale banking Ng Wei Wei said the bank is committed to supporting projects that will help the country make the transition to natural gas and renewable to increase the national power capacity mix.

“We are honoured to be part of the financing consortium for Selangor’s major power development plan that will generate more power for the residents in the central region of Peninsular Malaysia,” she said.

In the meantime, UOB Malaysia believes that the country will continue to increase renewable sources in its energy capacity mix to 20% by 2025, particularly solar power.

The projection is underpinned by the recent announcement of new power plant constructions under the Large Scale Solar (LSS) 4 programme by the Energy Commission.