KUALA LUMPUR: Pestech International Bhd has inked a memorandum of understanding (MoU) with Hydrogène De France SA (HDF Energy) to collaborate on green hydrogen production from hydropower plants in Cambodia and Malaysia.
In its filing with Bursa Malaysia, the integrated electrical power technology company said the potential collaboration would address multi-sector decarbonisation such as grid services and industrial applications.
Prestech said that under the MoU, the parties would cooperate on the development work for the projects in the regions of Malaysia and Cambodia as an initial phase.
"Due to its pioneer role in hydrogen, HDF Energy will take the lead on the project development scopes and sizes.
"Meanwhile, Pestech will take the role of local market liaison and coordination, in synergies with HDF Energy," it said.
According to Pestech, the company would be given the first right of refusal for the engineering, procurement, construction, and commissioning works subject to terms and conditions to be determined later on a project-by-project approach.
"The first right of refusal will depend on bankability criteria to be confirmed later by international and local lenders," it said.
HDF Energy is a global pioneer in hydrogen energy, develops high-capacity hydrogen power plants, and is active in its operation.
These plants will provide continuous or on-demand electricity from renewable energy sources (wind or solar), combined with high power fuel cells supplied by HDF Energy.
The MoU will come into effect on the date of the signing of the MoU and will remain in effect for three years from the effective date.