Gamuda to expand into Australian energy market

Gamuda is taking the next step in its Australian growth plans by targeting the energy sector with the long-term goal of being a leading end-to-end developer-builder-owner of assets to accelerate Australia’s clean energy future.

Since establishing itself in Australia in 2019 as a fully owned local subsidiary of regional engineering, property and infrastructure company Gamuda Berhad, Gamuda has focused on its core infrastructure business and secured three major road and rail projects with a combined value of AU$4.5 billion. Australia is now its largest construction market, with AU$2.5 billion in revenue forecasted for FY24 following the acquisition of DT Infrastructure from Downer Group.

To continue its growth, the company is now focusing its efforts on the Australian AU$328 billion clean energy and renewables infrastructure market. Gamuda’s strategy will go beyond the construction of renewable projects to invest up to 40% equity in solar and wind assets to build a 1-2GW portfolio within five years.

This will be supported by its parent, Gamuda Berhad’s strong balance sheet of AU$7.65 billion in total assets and low gearing of 25%, and follows its business model in Malaysia, which has previously funded and owned toll roads and expressways and most recently has invested in, and will construct, the major Ulu Padas 187.5 MW hydroelectric project in Sabah.

Gamuda will also continue to selectively bid for major EPC (Engineering Procurement Construction) contracts in solar, wind, pumped hydro and transmission network upgrades and expansion, fuelled by electricity demand and the transition to renewables.

Ewan Yee, Gamuda’s Chief Executive Officer, said the company was ready to take the next step to diversify and grow its business in Australia. The target is to achieve a sustainable AU$2 billion revenue in the next five years from energy projects alone.

“Our vision is to become a leading sustainable energy contractor and a key equity partner for the long term with a particular focus on solar, wind, pumped hydro and transmission,” he said.

“This vision builds upon our ongoing success in the Australia infrastructure market and is informed by our energy and water infrastructure experience across a number of projects globally.

“We also see our demonstrated key strengths in completing complex large-scale linear construction, tunnelling, hydro and geotech in Australia as highly suited to now transition to energy projects,” Mr Yee said.

To support its efforts, Gamuda has recently recruited a new team of locally experienced energy specialists. It is also aligning with international strategic partners to fast-track and derisk its plans by providing technical expertise, resources and a secure supply of components, including solar panels and transmission towers.

This includes Gamuda Berhad’s significant shareholding in ERS Energy, Malaysia’s most prominent solar contracting company with a 1 GW project pipeline in South-East Asia and who will bring their robust photovoltaic supply chain.

Jarred Hardman, Chief Strategy & Growth Officer, said Gamuda had identified an opportunity for a “ready to go” solution to meet the huge need to fast track energy projects to meet renewable targets, which needs to be fulfilled by more market players.

“Australia is transitioning towards 82% of total electricity generation being renewable by 2030 which remains a huge challenge considering currently only around 39.4% of our power comes from renewables,” he said.

“By looking to acquire development rights to shovel-ready projects we can construct and own in solar and wind, while we also secure EPC contracts in transmission and pumped hydro, our goal is to provide an end-to-end solution to fast-track energy projects and quickly gain a foothold, in keeping with our strategy in infrastructure which has seen us build a AU$4.5 billion workbook within 2-3 years.”

While Gamuda will diversify into the Australian energy sector, it will continue to deliver and bid on major tunnelling, road and rail infrastructure projects as core to its global and local business.

Click here for more information Gamuda’s energy capabilities.