KUALA LUMPUR (July 21): Jentayu Sustainables Bhd, which is developing a 170MW run-of-river hydropower plant in Sipitang, Sabah, plans to collaborate with Japan's Sumitomo Corp in renewable energy (RE) projects. 

The company inked a two-year memorandum of understanding (MOU) with Sumitomo on Thursday (July 20) to enter into a detailed discussion to solidify the potential collaboration.

It said the MOU articulates several strategic areas of potential collaborations: the joint venture and capital allocation into Jentayu's present and potential renewable power plant projects; cooperative management of related projects; and shared investment and development of upcoming renewable energy initiatives.

"This MOU is an instrumental move to facilitate final due diligence towards a promising collaboration between both parties. The MOU, signed at Sumitomo Corp’s headquarters in Tokyo, Japan, represents a significant step towards solidifying a potential partnership aimed at unlocking numerous potential joint developments, investments and operational opportunities. This concerted effort is anticipated to drive significant progression in Jentayu's renewable energy projects," said Jentayu in a statement.

"Tapping on Sumitomo Corp's extensive global experience and Jentayu's in-depth local knowledge, this framework signifies a mutual commitment to leverage both parties’ strengths to optimise project success rates and fine-tune operational efficiency, with the end goal of establishing a sturdy, resilient renewable energy ecosystem in Malaysia and the region," the statement further read. 

Jentayu's executive chairman Datuk Beroz Nikmal Mirdin said it is a privilege for the company to collaborate with Sumitomo Corp, which boasts a rich heritage of over 400 years. 

"Their interest in collaborating with us reflects a shared ambition of propelling the partnership into a formidable force in the regional renewable energy landscape. We are particularly cognisant of the immense learning potential this brings, providing us an opportunity to assimilate Sumitomo Corp’s respected corporate values and culture. This synergy is expected to enhance Jentayu’s capabilities and expedite the expansion of the company in both local and regional markets," he added.

Jentayu shares closed one sen or 1.02% higher at 99 sen, valuing the company at RM388.34 million.