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Hatten Land enters into JV to raise funds of up to US$10 mil for renewable energy projects

The Editor
The Editor9/16/2022 09:05 AM GMT+08  • 3 min read
Hatten Land enters into JV to raise funds of up to US$10 mil for renewable energy projects
The new JVA is said to boost Hatten Land's renewable energy business ambitions.
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Hatten Edge, the wholly-owned subsidiary of SGX-listed Hatten Land, has entered into a joint venture agreement (JVA) with Nefin to develop, construct, and operate renewable energy projects, with a focus on solar energy generation, in Singapore and Malaysia.

Under the JVA, both Nefin and Hatten Edge will invest US$10 million ($14.07 million) into Hatten Energy Holdings (the JVCo), where Hatten Edge will invest 10% of the investment amount in up to four tranches of US$0.25 million. Nefin will fund the remaining 90% of the US$10 million.

Further to the funding, Nefin will own 100% of the 9,000 redeemable preference shares, while Hatten Edge will own 100% of the 1,000 ordinary shares.

In its statement released on Sept 16, Hatten Land has revealed that the JVCo’s principal business will be to invest in and development of rooftop solar projects with long-term offtakes.

Hatten Edge will take on the primary role of developer, operator, and manager of the renewable energy projects under the joint venture while Nefin Group will undertake the primary role of funding, fund raising support and establishing governance controls in relation to projects undertaken by the joint venture.

According to Hatten Land, the group expects green energy generated from 15 Megawatt-peak (MWp) solar projects will generate approximately 18,000 Megawatt-hours (MWh) per year. This is the equivalent of powering more than 5,000 three-room Housing & Development Board (HDB) flats for an entire year.

See also: SGX launches initiative to recognise green, social and sustainability fixed income securities

Following the JVA, Hatten Energy will design, finance, and install solar photovoltaic (PV) systems at the premises of business owners while the latter purchases electricity generated from the solar PV system for their own consumption at a rate generally lower than usual rates of electricity distribution providers for an agreed duration under a Power Purchase Agreement (PPA).

Hatten Energy will own, operate, and maintain the solar PV systems, supplying and selling clean electricity to businesses for a contract period of typically 15 years to 20 years under the PPA.

The solar PV systems will also enable Hatten Energy to generate renewable energy certificates (RECs), which creates another revenue and cash flow stream for the business.

See also: Singapore doubles down on carbon trading at COP27

RECs are market-based instruments substantiating that electricity has been generated from renewable energy sources. Hatten Energy has a current project pipeline of 10MWp.

Nefin is part of Nefin Group, which is a premium green independent power producer (IPP) offering bespoke carbon neutral technologies & financing solutions in Asia Pacific. Nefin Group is funded by the Philippine-listed ACEN Corp. ACEN Corp is part of Ayala Corporation, one of the largest conglomerates in the Philippines.

Reik Ong, general manager of Hatten Energy, says, “With sustained high prices of fossil fuels, lower costs of solar PVs and a greater emphasis on environmental, social and governance (ESG), there are stronger value propositions and better cost efficiencies for a wider adoption of solar energy as energy demand continues to rise.”

He adds: “We see growing interest from enterprises in Southeast Asia on solar energy adoption and together with Nefin Group, we are fully ready to support their growing need for green energy and reduce their dependence on fossil fuels.”

Hatten Land, on the same day, announced that it has signed a PPA with Trend Technologies Singapore to supply and sell solar energy for 21 years.

Shares in Hatten Land closed at 3.1 cents on Sept 15.

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