Kelington Group Berhad Advances Green Hydrogen Initiative and Corporate Actions

Kelington Group Berhad (KL:KGB) has entered a decisive phase in its strategy to diversify beyond conventional infrastructure construction and into the burgeoning clean‑energy sector. On 10 October 2025, the company announced a Memorandum of Understanding (MoU) with the State of Selangor and two strategic partners to develop a 2‑megawatt (MW) green hydrogen production hub at the Batang Kali Small Hydropower Plant (SHP). The project will harness renewable electricity generated by the plant’s hydropower turbine to power electrolysis units, thereby producing hydrogen entirely from green sources.

Strategic Alliance and Project Scope

The MoU is signed through Kelington’s wholly‑owned subsidiary, Ace Gases Sdn Bhd, in collaboration with:

Ace Gases will spearhead the construction of the electrolyser plant, oversee day‑to‑day hydrogen production operations, and drive market expansion initiatives. The agreement is slated for two years, with an option to extend upon mutual consent.

Market Implications

The green hydrogen hub aligns Kelington Group’s long‑term vision of positioning itself as a key player in sustainable infrastructure. By leveraging its existing engineering expertise and the State’s renewable assets, Kelington can:

1. Create a scalable, low‑carbon hydrogen production model that can be replicated at other hydropower sites across Malaysia.
2. Tap into the growing demand for hydrogen in transportation and industrial processes, particularly within the ASEAN region where governments are intensifying decarbonisation targets.
3. Generate new revenue streams through the sale of hydrogen and related services, diversifying the company’s traditionally construction‑centric portfolio.

The move is timely, as the Malaysian government’s National Hydrogen Roadmap targets the deployment of 100 MW of green hydrogen by 2030. Kelington’s 2 MW project represents a critical proof‑of‑concept that could attract further investment and public‑private partnerships.

Corporate Actions and Shareholder Impact

In addition to the green hydrogen initiative, Kelington Group executed a corporate proposal on 10 October 2025, issuing 400,666 new shares at an issue price of MYR 1.3800. Following this proposal, the company’s issued share capital increased to 774,492,571 shares, with a par value of MYR 1.3800 per share. The new capital structure, post‑issuance, stands at MYR 257,461,417.390, reflecting a robust capital base that supports both the hydrogen project and ongoing construction operations.

The share issuance has a dilutive effect on existing shareholders but is justified by the strategic alignment with Malaysia’s green transition agenda. The market has responded positively, with the share price closing at MYR 5.78 on 8 October 2025—comfortably within the 52‑week high of MYR 5.85 and above the low of MYR 2.60. The price‑earnings ratio of 33.95 indicates that investors are pricing in significant upside potential from the new green hydrogen venture.

Leadership Recognition

Kelington Group’s technological leadership has also received external validation. Raymond Gan Hung Keng, Kelington’s Chief Technology Officer, has been shortlisted for the EY Entrepreneur of the Year 2025 Malaysia award in the Technology Entrepreneur category. His nomination underscores the company’s commitment to innovation and its role as a catalyst for Malaysia’s clean‑energy future.

Forward Outlook

With the green hydrogen hub under development and a strengthened capital base, Kelington Group is positioned to:

• Accelerate the commercialization of green hydrogen in Malaysia.
• Expand its infrastructure portfolio into renewable energy projects.
• Enhance shareholder value through diversified revenue streams and strategic partnerships.

Stakeholders should monitor the progress of the Batang Kali project, the regulatory framework surrounding hydrogen in Malaysia, and the company’s financial performance as it integrates these new initiatives into its operational model.