IOI Corp considers more plantation leases for solar development
The group is assessing additional estates after announcing a partnership for a 500MW solar project in Bahau, Negeri Sembilan.
IOI Corp Bhd is considering leasing additional plantation land to solar developers to broaden its sources of income beyond palm oil, group managing director and CEO Datuk Lee Yeow Chor said on Nov 4.
Speaking after the group’s annual general meeting, Lee said several experienced renewable energy developers had approached IOI Corp. The group is evaluating other estates, with suitability depending on access to grid connections. He said at least two more estates were near major TNB grid connection points.
IOI Corp has announced a partnership with Tenaga Nasional Bhd and a consortium comprising 12 small and medium enterprises to develop a 500MW solar project in Bahau, Negeri Sembilan. Completion is targeted for end-2028, but Lee said the venture was too preliminary for an earnings contribution estimate.
The development vehicle is Bahau Energy Ventures Sdn Bhd. Tenaga subsidiary TRe owns 70%, while Luminous Aspect Sdn Bhd, an IOI Corp subsidiary, holds 25%. The consortium’s CSP 500MW Sdn Bhd owns 5%. The project is included in the group’s strategic roadmap covering 2025 to 2029.
Lee said leasing the land was expected to offer steadier income than plantation operations exposed to commodity price movements. He also said the project would advance the group’s climate strategy and improve land use.
