KUALA LUMPUR (May 9): Solarvest Holdings Bhd (KL:SLVEST) said on Thursday that it has secured a contract worth RM40.4 million to install rooftop solar photovoltaic (PV) systems.

The agreement involves engineering, procurement, construction and commission (EPCC) work at eight sites in Malaysia owned by Scientex Bhd (KL:SCIENTX) with a cumulative capacity of 21 megawatt peaks, Solarvest said in an exchange filing.

Solarvest said its unit Solarvest Energy Sdn Bhd (SEBB), a wholly-owned subsidiary of Atlantic Blue Sdn Bhd, which is in turn a wholly-owned subsidiary of the company, has entered into an EPCC agreement with Scientex.

The project is slated to commence in May 2024. By January 2025, Solarvest said it is expected to generate enough renewable energy to offset approximately 14,000 tonnes of CO2 equivalent (tCO2e) annually by Scientex.

Solarvest executive director and group chief executive officer (CEO) Davis Chong Chun Shiong said the collaboration signifies its commitment to work towards a sustainable economy.

“Scientex’s commitment to renewable energy sets a powerful example for the manufacturing sector, demonstrating how businesses can significantly reduce their environmental footprint in their value chain,” Davis added.

Meanwhile, Scientex CEO Lim Peng Jin said the group is making a major push in renewable energy with this nationwide solar project.

"Expanding our solar footprint across the majority of our manufacturing facilities reduces our carbon footprint by 14,000 tCO2e annually and solidifies our commitment to ESG leadership," Lim said.

He added its initiatives align with the group's commitment to supporting its customers, both locally and internationally, in achieving their sustainability goals within the supply chain.

At market close on Thursday, shares in Solarvest ended unchanged at RM1.56, giving the company a market capitalisation of RM1.05 billion.

Meanwhile, shares in Scientex settled three sen or 0.68% lower at RM4.39, valuing the company at RM6.81 billion.