Sunway Construction Sdn Bhd, a wholly-owned subsidiary of Sunway Construction Group Berhad (SunCon) and ENGIE South East Asia today signed a memorandum of understanding (MoU) to set up a joint venture company (JVCo) to boost the country’s environmental sustainability effort through the expansion of district cooling technology. ENGIE South East Asia is part of the ENGIE Group, the European leader in energy and value-added energy solutions with a global presence.  

The JVCo will engineer, finance, construct, develop, operate and maintain district cooling systems for greenfield and brownfield urban development projects, including some of Sunway’s portfolio of office buildings, retail malls, educational institutions, medical centres, hotels, resorts, theme parks and factories. The JVCo will also leverage Sunway’s capabilities and experience as a conglomerate with 13 business divisions and the core business and technical competencies of ENGIE in integrated green and sustainable environmental solutions.

The partnership will accelerate the adoption of district cooling technology in Malaysia, which will contribute towards the nation’s environmental sustainability goals. This is also in line with Sunway’s commitment towards advancing the United Nations Sustainable Development Goals (UNSDG), particularly Goal 7: Affordable and Clean Energy.

Pierre Cheyron, ENGIE South East Asia Chief Executive Officer said, “We are delighted by this opportunity to collaborate with one of Malaysia’s largest conglomerates to aid the country’s low carbon transition. With the combined unparalleled deep expertise and global experience from both ENGIE and Sunway, we are confident that this partnership will bring about a significant impact on Malaysia’s sustainability objectives and her people in the country.”

Liew Kok Wing, Sunway Construction Sdn Bhd Managing Director commented, “We are pleased to be embarking on this partnership with ENGIE, which marks a significant milestone in our venture in the renewable energy sector. This new venture will not only provide strong long-term recurring revenue to SunCon, but also complements our core competencies in delivering value added and sustainable solutions to our clients.” 

District Cooling Systems

Globally, district cooling systems are becoming the preferred cooling solutions for cities and buildings, as compared to stand-alone chiller plants. District cooling produces chilled water centrally for distribution to nearby facilities through a network of insulated pipes to achieve efficient air conditioning of buildings. 

This technological approach is more efficient and generates significant savings in capital expenditures, energy and operating costs compared to the conventional usage of de-centralised chiller plants. District cooling is a key enabler in meeting the increasing air conditioning needs from businesses and customers in a more sustainable way for the environment, in Malaysia and in ASEAN. 

ENGIE operates 393 district heating and cooling networks globally including four district cooling plants in South East Asia including Megajana District Cooling System at Cyberjaya, Malaysia, Northgate District Cooling Plant in The Philippines and the District Cooling Systems for Punggol Digital District in Singapore.