TotalEnergies ENEOS has recently completed the installation of a 680-kilowatt-peak photovoltaic solar system on the roof of TechnipFMC’s plant in Malaysia. The project is part of a partnership between the two groups aimed at improving industrial energy supply through decentralised and contractual solutions.
A project based on a long-term power purchase agreement
The installation includes more than 1,100 solar modules and will generate around 915 megawatt-hours of electricity per year. According to data shared by the companies, this capacity represents nearly 20% of the site’s annual energy consumption. No upfront investment was required from TechnipFMC; TotalEnergies ENEOS will provide all funding, installation, and maintenance for the full duration of the eighteen-year power purchase agreement.
The terms of the agreement specify that TechnipFMC will purchase the electricity produced on-site, reducing its reliance on the grid and stabilising long-term energy costs. This contractual model is gradually gaining ground in the Southeast Asian industrial market, where companies seek to optimise their energy bills while modernising their infrastructure.
Emissions reduction and industrial strategy
Forecasts indicate that the site could avoid nearly 500 tonnes of carbon dioxide (CO2) annually due to this system. Representatives from both groups highlighted the importance of industrial collaboration and technical expertise required for successful implementation at strategic sites.
The Johor Bahru region, where the facility is located, is attracting a growing number of investments related to decentralised energy, supporting the integration of renewable technologies in supply chains. The partnership is also based on the ability to integrate advanced engineering and the experience of involved teams to ensure long-term performance of the installations.
Deployment of contractual models in the regional industry
This initiative is part of a regional dynamic aimed at promoting on-site energy solutions without capital mobilisation by industrial users. The eighteen-year agreement offers operational and financial visibility while ensuring maintenance and technological monitoring of the solar plant by the original operator.
TechnipFMC is among the industrial players adopting this type of model to accompany the evolution of its energy portfolio. Power purchase agreements provide flexible adaptation to the specific needs of manufacturers while contributing to the transformation of local power grids.
