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Acromec signs MOU with Green Energy Resources to explore renewable energy opportunities
CATALIST-listed engineering company Acromec announced that it has signed a memorandum of understanding (MOU) with Malaysian alternative energy specialist Green Energy Resources (GER) to explore opportunities in renewable energy.
In a statement, Acromec said that both companies will contribute manpower and other resources to explore opportunities in projects pertaining to the generation of electricity using sustainable feedstock, without elaborating.
The agreement also covers cooperation between the two firms on build-own-operate (BOO) energy projects.
According to a media statement, Acromec will contribute its expertise in controlled environments engineering, and GER will contribute its expertise in green technologies.
The two will potentially collaborate to build renewable energy plants on a BOO basis, Acromec said.
The MOU is valid for six months, subject to further extension by mutual agreement, and precludes either company from entering into any discussion or negotiation with third parties "concerning or relating to the development of the opportunities to undertake renewable energy projects".
Lim Say Chin, Acromec's executive chairman and managing director, said: "Acromec and GER see growing opportunities in the renewable energy segment. Acromec's possible entry into this space builds on our existing niche expertise to potentially create an additional stream of income."
Acromec closed on Thursday at 26.5 Singapore cents, up one Singapore cent or 3.92 per cent.