Founder Group secures $2.36 million solar project contract in Malaysia

KUALA LUMPUR - Founder Group Limited (NASDAQ:FGL) has secured a RM10 million (approximately US$2.36 million) contract for the engineering, procurement, construction, and commissioning of a 30-megawatt large-scale solar photovoltaic plant in Malaysia, according to a press release issued Wednesday. The contract value represents about 12% of the company’s current market capitalization of $23.1 million.

The company will handle civil and structural works, infrastructure development, installation, testing, commissioning, and interconnection facility for the project, which is expected to be completed by the end of 2025.

Upon completion, the solar farm is projected to generate approximately 60,000 MWh of clean energy annually, equivalent to offsetting around 40,000 tonnes of CO2 emissions. The project is also anticipated to contribute nearly 60,000 Renewable Energy Certificates to the market.

"We are honored to be awarded this project, a recognition that underscores Founder Group’s longstanding reputation and consistent performance in delivering high-quality solutions," said Lee Seng Chi, Chief Executive Officer of Founder Group Limited.

The company stated it has previously secured contracts with the same solar installation company for similar facilities.

Founder Group Limited describes itself as an end-to-end EPCC solutions provider for solar PV facilities in Malaysia, focusing on large-scale solar projects and commercial and industrial solar projects.

In other recent news, Founder Group Limited announced that the proposed wind down of U.S. solar power tax credits by 2028 will not impact its business operations or financial performance. The company clarified that its revenue is primarily derived from the Malaysian market, as it does not have operations in the United States. Additionally, Founder Group signed a memorandum of understanding with GCL Systems Integration Technology Co. Ltd. to explore renewable energy projects in Malaysia and other ASEAN countries. The collaboration is estimated to be valued at up to $220 million. Both companies will share information, implement specific actions, and periodically assess the effectiveness of their partnership. This agreement aims to leverage technical expertise from both parties to support joint projects in the renewable energy sector. These developments highlight Founder Group’s strategic focus on expanding its footprint in the ASEAN renewable energy market.

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