Acromec unit enters JV with Nutura Investment for waste-to-energy plant

SPECIALIST engineering services firm Acromec is teaming up with Nutura Investment to build, own and operate a waste-to-energy plant in Neo Tiew Road in Lim Chu Kang.

Acromec said on Thursday that its 80-per-cent owned subsidiary Acropower has entered into agreements with Nutura to formalise a joint venture and implement it through a joint-venture company called Neo Tiew Power.

The joint venture will come into effect when the customary conditions precedent are satisfied or waived, and the joint-venture company enters into a purchase order to buy and transfer the waste-to-energy plant from Acropower to Neo Tiew Power.

Nutura is a Singapore-incorporated investment holdings company that will co-finance the project, which has an estimated investment value of S$10 million. It will contribute S$1.3 million for a 30-per-cent stake in Neo Tiew Power; Acropower will hold the remaining 70-per-cent equity interest for an investment of S$1 million.

Acropower and Nutura will also provide Neo Tiew Power with shareholder loans of up to S$5 million and S$2.7 million respectively.

Neo Tiew Power, incorporated in February this year, will carry out an agreement between Acropower and Chew's Agriculture to set up the waste-to-energy plant on Chew's Agriculture's new poultry farm. The plant will process and convert waste from the farm into biogas, which will be used to generate electricity to be supplied back to the farm at agreed prices.

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The earlier agreement between Chew's Agriculture and Acropower was novated to the joint-venture company on June 16, Acromec said in its statement.

Lim Say Chin, executive chairman and managing director of Acromec, said he hopes the joint-venture agreement between Acropower and Nutura will mark the start of a long-term partnership in green technology and sustainable energy.

He added: "This is yet another milestone in Acromec's renewable energy business. We are riding on the global trend which sees the world moving towards increased reliance on renewable energy sources, and we are confident that this sector is ripe with potential."

Acromec shares closed at S$0.119 on Thursday, down 1.2 Singapore cent or 9.16 per cent.