KUALA LUMPUR: Jentayu Sustainables Bhd has secured a solar power purchase agreement under the self-consumption (Selco) scheme with Outspan Malaysia Sdn Bhd.
In a statement, it said Outspan, a subsidiary of Olam International Ltd in Singapore, has a facility in Port of Tanjung Pelepas Free Zone that operates a dairy processing plant producing fat-filled milk powder and dairy ingredients.
The agreement is valued at more than RM5mil for a 20-year contract tenure at a pre-agreed fixed tariff that allows Outspan to purchase electricity at lower-than-grid rate, giving them approximately 10% savings over the contract period.
There will be zero investments or capex required from Outspan and all related rooftop solar PV system and installation cost will be borne by Jentayu Sustainables.
According to Jentayu executive chairman Datuk Beroz Nikmal Midin (pic), the agreement serves as part of Jentayu's business expansion plan addresses Olam's group net-zero aspiration and needs more tansitioning into using sustainable and cleaner energy.
“This deal is also aimed to identify more regional synergistic opportunities and possibilities that transcends beyond solar PV systems such as renewable energy certificate and carbon credit acquisitions, carbon related audit and consultations.
"We remain steadfast in our pursuit to become a leading sustainable energy player, building from strength to strength, hinging on sustainability as our focal point in all that we do,” said he added.