KUALA LUMPUR: Elridge Energy Holdings Bhd’s wholly-owned subsidiary, Bio Eneco Sdn Bhd has entered into a memorandum of understanding (MoU) with PT Orion APAC Indonesia (Orion) for the sale and purchase of palm kernel shells.
Under the terms of the MoU, Elridge Energy will supply Orion with 150,000 tonnes of palm kernel shells annually over a three-year period, beginning in April 2025 and concluding in March 2028.
Elridge Energy, in a filing with Bursa Malaysia, said the contract also includes an option for automatic renewal for an additional three years, subject to renegotiated terms and conditions.
This long-term agreement is expected to contribute positively to Elridge Energy’s financial performance, underscoring the importance of this strategic partnership.
"With our long business relationship and our previous successful deals, this collaboration further proves the trust and confidence that Orion has in our products and capabilities. We are excited to continue our successful partnership and work together to contribute to the sustainable energy landscape,” Elridge Energy executive director and chief executive officer Oliver Yeo said in a statement.
Meanwhile, Orion CEO Max Marcus said: "Our ongoing partnership with Elridge Energy Group has been instrumental in meeting the increasing demand for sustainable biomass fuel. We are confident in Elridge Energy Group’s ability to deliver top-tier products consistently, and we anticipate that this new agreement will further solidify our collaboration and drive mutual growth in the coming years."
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