SUBANG JAYA, 7 DECEMBER 2020 – Salcon Berhad (“Salcon”) today announced that its’ subsidiary, Satria Megajuta Sdn Bhd (“Satria”) has entered into three (3) Solar Power Purchase Agreements (“SPPA”) with HeveaPac Sdn Bhd (“HeveaPac”), a wholly-owned subsidiary of HeveaBoard Berhad, one of the largest laminated particleboard shelving furniture producers in Asia. Salcon’s subsidiary, Salcon SER Sdn Bhd holds 67% equity interest while HeveaPac in turn, holds 33% equity interest in Satria.
Under the terms of SPPAs, Satria undertakes to design and install rooftop solar photovoltaic (“Solar PV”) systems with a total combined capacity of 1.48 MW on HeveaPac’s premises located at Kawasan Perindustrian Sg. Gadut, Negeri Sembilan and thereafter, own, operate and maintain the sSolar PV systems for a period of twenty-five (25) years from the commercial operation date. The Solar PV systems are expected to be fully operational by the first half of 2021, aiming to produce approximately 1.8 million kWh of green energy per year. This is the equivalent of powering 654 households in Malaysia in a year whilst reducing annual CO2 emissions by an average of 1,210 tonnes or 30,248 tonnes throughout the SPPAs’ tenure, which is equivalent to the CO2 absorption of at least 52,000 trees.
Yoong Hau Chun, Managing Director of HeveaBoard Berhad said “We are committed to environmental sustainability. With the installation of the Solar PV systems in our manufacturing facilities, the utilization of solar energy will not only lower our operating cost but will also reduce the carbon footprint in our daily business operations.”
Michael Leong, CEO of Salcon SER Sdn Bhd said “This signing represents a significant milestone for Salcon as part of our strategic initiative to diversify into the Renewable Energy (RE) sector to provide sustainable energy solutions. We are very proud to partner HeveaPac on their efforts to reduce its carbon footprint for a sustainable future.”
“As the green energy industry is rapidly growing, we are keen to invest and expand our green energy solutions by partnering with Multi-National Corporations (MNCs) and local leaders across various industries looking to reduce their electricity cost in their daily business operations via our dedicated RE investment arm, Salcon SER Sdn Bhd, to spearhead the green energy initiatives.” he added.
The successful execution of this project will contribute an additional stream of sustainable recurring income to the Group. Salcon first ventured into the solar business in 2012 when its subsidiary invested in rooftop solar solution for over 1,600 homes in United Kingdom. With the increasing climate change mandates and the significant improvements in solar energy technology, companies such as HeveaPac are putting their sustainable development goals into practice, pursuing renewable energy options and are committed to reducing their impact on the environment.
The project will be developed under the Net Energy Metering (“NEM”) scheme implemented by Sustainable Energy Development Authority (“SEDA”) Malaysia where any excess energy generated at discounted tariff is exported to the grid for which credit will be received to offset part of the electricity imported from TNB, resulting in lower electricity cost for consumers. By generating their own green energy, consumers will contribute to the reduction of CO2 emissions, hence reducing their carbon footprint and mitigating climate change.
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