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‘亚马逊云账’(号)(www.2km.me)_HSS to grow renewable energy business

admin2021-10-2421

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HSS Engineers Bhd will soon be getting more involved in the renewable energy (RE) scene, which would see it improving its environmental, social and governance (ESG) credentials.

The strong ESG advocacy by investors have pushed many companies to get themselves involved in projects that would help build a sustainable environmental future.

“We are training our long-term sights on establishing a recurring revenue stream for greater sustainability, making the RE space to become our fourth vertical.

“We are exploring options like taking equity stakes in solar plants, waste-to-energy (WTE) plants, small hydro projects and biomass or biogas projects.

“Our engineering expertise can be used for their operations,” HSS Engineers executive vice-chairman and acting group chief executive officer Tan Sri Kunasingam V. Sittampalam (pic) tells StarBizWeek.

“We are considering rooftop solar as a viable way to harness Malaysia’s sunny climate in a cost-effective manner.

“We are in the final stages of negotiating with a client. In some of these jobs, we are in a joint venture with a Japanese firm and they are one of the biggest players in RE with more than 500 megawatts of power right now,” he adds.

Kunasingam says the company scrutinises RE projects strictly, especially in terms of the required internal rate of return, before deciding to get involved.

Its foray into the RE sector began with a contract win in mid-August. Associate company HSS Integrated Sdn Bhd was appointed by Cenviro Sdn Bhd as the engineering partner for the development of a waste management centre in Johor.

“This is a significant stepping stone for the group into the fourth vertical to establish long-term income, complementing our core expertise in engineering services, project management consultancy and building information modelling,” says Kunasingam.

Meanwhile, HSS had also set its sights on gaining exposure to a new growth industry in the country, namely data centres.

“Malaysia is fast becoming a hotspot for data centres. About two years ago, Singapore imposed a moratorium on the establishment of new data centres due to power and land shortage.

“Neighbouring countries such as Malaysia and Indonesia are expected to benefit from the spillover demand,” Kunasingam says.

According to industry statistics, the data centre sector in Malaysia is expected to experience revenue growth of more than US$800mil (RM3.33bil) by 2030.

“We have embarked on a collaborative partnership approach with global leading data centre specialists to pursue engineering and project management opportunities in Malaysia and South-East Asia.

“We have been shortlisted for two project management consultancy bids for upcoming data centre projects in the country,” he says.

On its expectations for the upcoming Budget 2022, Kunasingam says he’s anticipating the Mass Rapid Transit 3 (MRT3) to be rolled out and that the company could benefit from this as well.

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