Genting Bhd has formally handed over control of a major Fujian coal-fired power facility to the local government following the expiry of its long-running power purchase agreement, marking a notable step in the group’s broader strategy to tilt its energy portfolio toward cleaner, more sustainable sources. The partial owner, SDIC Genting Meizhou Wan Electric Power Company Ltd, which holds a 49% stake, has ceased operational control of the 786MW plant that has operated in Fujian since January 2004 under a build-operate-transfer framework. In its issued market filing, Genting described the handover as a testament to the group’s long-term commitment to developing a cleaner and more sustainable energy portfolio, even as it remains a participant in the region’s energy landscape through its other assets. The handover, however, does not diminish the continued operation of another major asset in the same area: the adjacent Meizhou Wan power complex, a separate 2,000MW ultra-supercritical facility that was commissioned in 2017 and is owned and operated by SDIC Genting Meizhou Wan Electric Power Company Ltd after the completion of the transfer. The event underscores Genting’s disciplined approach to its coal holdings, reinforcing that while no new coal projects are being pursued, the group will manage its existing coal-fired assets prudently to maximize value while they remain in service. The company’s stated aim is to steward these plants responsibly through the remainder of their operational lives, aligning with a deliberate, balanced transition strategy between traditional energy generation and greener alternatives.
The handover also signals a broader strategic pivot within Genting’s power division, which remains focused on high-potential investments in renewable and clean energy as part of a diversified energy mix. The shift accompanies the company’s ongoing collaboration with SDIC Power Holdings Co Ltd, through joint ventures designed to accelerate the development of cleaner power generation. Among the highlighted projects is a 120MWp solar installation in Dongwu Cha, Fujian, described as aquaculture-complementary and intended to support local energy needs while contributing to sustainable agricultural practices. This solar project, which began commercial operations on May 31, 2025, illustrates Genting’s commitment to integrating renewable energy solutions with other economic activities, reflecting a broader industry trend toward multifunctional energy assets. In addition to solar, Genting’s clean-energy pipeline includes a hydrogen-ready, 1,490MW gas-fired plant in Zhoushan, China, under development with a target to begin commercial operation by mid-2026. The Zhoushan project represents a forward-looking approach to natural gas-fired generation, designed to be compatible with hydrogen-ready technology to enable a smoother transition toward lower-emission fuels as technology and policy evolve. These two projects are part of a broader collaboration with SDIC Power Holdings Co Ltd that underscores Genting’s strategy to pursue renewable and low-emission capacity alongside selective, cleaner fossil-fuel developments that can adapt to future energy landscapes.
Genting disclosed in June 2024 that it would invest up to RM277 million in the Zhoushan gas-fired plant, underscoring the group’s readiness to deploy capital toward mid-to-long-term clean-energy infrastructure. This investment is presented within a larger narrative of a deliberate transition away from new coal development while preserving, managing, and optimizing the performance of existing coal assets that remain economically viable during their useful life. The company’s leadership has consistently communicated a desire to pursue a balanced portfolio that prioritizes environmental stewardship, operational reliability, and prudent capital allocation in a shifting energy market. The market response on the date referenced in the report showed Genting shares closing up three sen, or 1%, at RM3.08, which gave the group a market capitalization of approximately RM11.94 billion. This price movement can be interpreted as a positive signal from investors in light of Genting’s ongoing repositioning and the potential for future earnings supported by its growing renewables pipeline and cleaner-energy initiatives.
Background and operational context for the Fujian handover
The 786MW coal-fired facility in Fujian that Genting has handed back to the local government was operated by SDIC Genting Meizhou Wan Electric Power Company Ltd (SDICG MZW) since January 2004 under a build-operate-transfer arrangement. The expiry of the power purchase agreement, which spanned roughly 21.5 years, marked a natural conclusion of the current contractual framework governing the project. The handover is framed by the group as a reflection of its long-standing commitment to transforming its energy portfolio toward cleaner and more sustainable energy sources, reinforcing a deliberate strategy to reallocate resources toward renewable and low-emission generation. It is important to note that the handover is not a withdrawal from energy investments in the region, but rather a strategic realignment as part of a broader plan to optimize asset mix and to pursue growth opportunities in areas aligned with environmental and regulatory expectations for the energy sector.
Following the transfer, SDICG MZW will continue to own and operate the adjacent Meizhou Wan power plant, a substantially larger asset with a generation capacity of 2,000MW. Commissioned in 2017, this plant is described as ultra-supercritical and benefits from advanced generation technology as well as full environmental compliance. Ultra-supercritical plants are designed to operate at higher efficiency than conventional coal plants, which translates into reduced fuel consumption and lower emissions per unit of electricity produced. The continuation of SDICG MZW’s ownership and operation of the Meizhou Wan complex indicates that Genting remains invested in China’s electricity market through a stake in a large, modern facility while cycling the older asset into a different ownership and management framework. Genting’s public statements emphasize that there will be no new coal projects undertaken by the company, and that the group will focus on managing existing coal-fired assets responsibly through their remaining operational life. This stance is consistent with a broader industry shift toward de-risked fossil-fuel exposure while accelerating the deployment of renewable energy technologies and cleaner-energy assets.
Strategic implications for Genting’s energy portfolio
The handover is consistent with Genting’s stated objective of constructing a more sustainable and diversified energy portfolio, reducing exposure to new coal development, and strengthening the company’s capability to participate in the global transition to cleaner energy. By transferring control of the Fujian coal asset, Genting signals a willingness to realign its asset base in line with evolving market dynamics, regulatory frameworks, and investor expectations around climate risk and environmental performance. The ongoing operation of the Meizhou Wan plant by SDICG MZW ensures continuity of supply and operational stability for a facility that remains an important component of the region’s power supply. Genting has clarified that it will continue to oversee its existing coal assets through a careful end-of-life management plan, ensuring that decommissioning decisions are aligned with safety, environmental considerations, and economic viability.
In parallel, the company’s strategic emphasis on renewables and clean-energy investments reflects a long-term growth orientation toward assets with lower environmental impact and stronger alignment with decarbonization goals. The joint venture with SDIC Power Holdings Co Ltd to pursue renewable energy initiatives is a central element of this strategy, highlighting a collaborative approach to unlocking scale and technical expertise in the sector. The 120MWp aquaculture-complementary solar project in Dongwu Cha represents a nuanced approach to renewable development, combining solar generation with aquaculture activities to enhance land-use efficiency and provide synergies between energy and agriculture. The fact that the project commenced commercial operations on May 31, 2025, indicates near-term execution success and signals Genting’s ability to deliver on its clean-energy commitments within a relatively short time frame from project conception to operation.
The Zhoushan project adds another dimension to Genting’s clean-energy ambitions by incorporating a hydrogen-ready gas-fired plant with a substantial capacity of 1,490MW. The hydrogen-ready designation implies that the plant is designed to facilitate the future introduction of clean hydrogen or hydrogen-rich fuels as technology and policy landscapes evolve, thereby enabling a smoother transition toward lower-emission energy solutions without the need for immediate, full-scale fuel switching. The mid-2026 target for commercial launch positions the project as a near-to-mid-term contributor to Genting’s energy mix and provides an opportunity to participate in potential green hydrogen value chains and related regulatory incentives. The RM277 million investment disclosed in June 2024 underscores the group’s commitment to funding this transition, balancing near-term capital expenditure with longer-term diversification goals. Together, these initiatives reinforce Genting’s intent to move beyond traditional coal reliance toward a portfolio that integrates renewables with adaptable, cleaner fossil-fuel technologies.
Operational, financial, and investor considerations
From a financial perspective, the handover reduces Genting’s visible exposure to a non-renewable asset in a region where the economic life of coal facilities is under increasing scrutiny. It is consistent with a prudent capital-allocation strategy that prioritizes asset optimization, risk mitigation, and the ability to redeploy capital into growth opportunities in cleaner-energy segments. The company’s emphasis on continuing to manage its existing coal assets responsibly through their operating life remains a key part of the risk management framework, ensuring that any transition is orderly and economically rational. The ongoing operation of the Meizhou Wan complex by SDICG MZW, coupled with Genting’s expanding renewable portfolio, could potentially create synergies in the broader energy ecosystem, including grid balancing, technology transfer, and shared services across joint ventures.
For investors, Genting’s evolving energy mix carries implications for revenue stability, capital expenditure profiles, and exposure to policy shifts that favor cleaner sources of energy. The company’s market communications around the Zhoushan project’s hydrogen-ready design and the aquaculture-integrated solar development underscore a narrative of deliberate transition rather than abrupt disruption. The stock market reaction, with a modest gain on the day in question, suggests investors are interpreting these moves as constructive toward a more resilient, cleaner-energy-oriented business model, even as the market remains mindful of the challenges associated with financing, permitting, and executing large-scale energy projects in a dynamic regulatory environment. Going forward, stakeholders will likely monitor the pace of renewable-portfolio expansion, the execution risk associated with the Zhoushan project, and the extent to which Genting’s collaborations with SDIC Power can translate into scalable, profitable outcomes.
Renewable and clean-energy project portfolio: details and implications
The 120MWp solar project in Dongwu Cha is characterized as aquaculture-complementary, which points to an integrated approach where solar generation dovetails with aquaculture activities. This type of project design is increasingly seen as a way to optimize land use and resource efficiency while delivering clean energy. The fact that commercial operations commenced on May 31, 2025, provides a tangible near-term contribution to Genting’s clean-energy capacity and demonstrates the viability of integrated agricultural-energy models within the broader solar market. Such projects can serve as pilots for broader deployment in coastal or water-adjacent regions and may offer opportunities for additional revenue streams or cost-sharing arrangements with local industries, depending on regulatory and market mechanisms in place.
The Zhoushan gas-fired plant, destined to become hydrogen-ready, represents Genting’s bet on a next-generation power asset that can respond to evolving fuel and technology paradigms. A hydrogen-ready designation implies the plant is designed to accommodate future fuel transitions with minimal reengineering, potentially enabling a longer asset life and the ability to adapt to decarbonization strategies as hydrogen technology and supply chains mature. With a capacity of 1,490MW, this facility is positioned to play a meaningful role in meeting peak demand and providing reliability, especially as renewable generation expands and variability management becomes more critical. The mid-2026 target for commercial operation places the project in the near-term horizon and could influence power-market dynamics, including demand for flexible, cleaner generation in the region. The RM277 million investment, disclosed in 2024, aligns with an emphasis on high-potential, future-ready assets that can contribute to Genting’s growth narrative while enabling the company to participate in cleaner-energy value chains, including potential partnerships and technology-sharing opportunities via its SDIC Power alliance.
Conclusion
Genting’s latest move—handing over the Fujian coal asset after the PPA expiry—illustrates a strategic transition that balances the stewardship of existing coal assets with a decisive push toward a cleaner-energy future. The continuation of Meizhou Wan under SDICG MZW ensures continuity and reliability in the local power landscape, while Genting’s expanding renewables and cleaner-energy projects reflect a proactive approach to portfolio diversification. The aquaculture-integrated solar project in Dongwu Cha and the hydrogen-ready Zhoushan gas-fired plant exemplify the kind of innovative, adaptable infrastructure that can support a lower-emission energy system, in line with global decarbonization trends and investor expectations. By maintaining a measured stance on coal—opting not to pursue new coal projects while responsibly managing current assets—the group aligns its business strategy with evolving environmental standards, regulatory pressures, and the imperative to invest in scalable, future-facing energy solutions. As Genting advances its renewables-focused agenda in collaboration with SDIC Power, stakeholders will watch how these initiatives translate into measurable growth, resilience, and value creation across the company’s broader energy portfolio.