KUALA LUMPUR (Oct 7): Jentayu Sustainables Bhd has secured a solar power purchase agreement worth RM5 million under a self-consumption scheme with Outspan Malaysia Sdn Bhd.

In a statement on Friday (Oct 7), Jentayu said Outspan’s facility in the Port of Tanjung Pelepas free zone operates a dairy processing plant that produces fat-filled milk powder and dairy ingredients.

Outspan is a subsidiary of Olam International Ltd headquartered in Singapore.

Jentayu said the agreement is for a 20-year contract tenure at a pre-agreed fixed tariff that allows Outspan to purchase electricity at a lower-than-grid rate, giving approximately 10% savings over the contract period.

It said there will be zero investments or capital expenditure required from Outspan, and all related rooftop solar photovoltaic (PV) system and installation costs will be borne by Jentayu.

Jentayu executive chairman Datuk Beroz Nikmal Mirdin said the agreement with Outspan serves as part of its business expansion plan, and subsequently addresses Olam’s net-zero aspirations and needs towards transitioning into using sustainable and cleaner energy.

“This deal is also aimed to identify more regional synergistic opportunities and possibilities that transcend beyond solar PV systems, such as renewable energy certificates and carbon credit acquisitions, carbon-related audits 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,” he said.

At 9.53am, Jentayu had added 0.94% or half a sen to 53.5 sen, with 1.36 million shares traded.