Acromec unit inks pact to build second waste-to-energy plant for industry

ONE of Catalist-listed specialist engineering services provider Acromec's subsidiaries could build a waste-to-energy plant at a wood chip processing farm in Singapore, under a memorandum of understanding (MOU) inked and disclosed on Tuesday.

The MOU, which comes with an obligation for exclusive negotiations, is valid for six months and could see Acromec's 80 per cent-owned Acropower turn wood chips into biogas, to generate electricity for an unnamed landscaping company that now relies on diesel generators to process wood waste.

The waste-to-energy concept is similar to an ongoing project that began last year with poultry farmer Chew's Agriculture, the group noted in a statement.

Lim Say Chin, executive chairman and managing director of Acromec, said the latest MOU "is encouraging for the group as it continues to make inroads into the industry".

Still, the company reminded shareholders and potential investors in its bourse announcement that there is no guarantee at this point "as to whether the proposed construction of the plant will materialise, or whether it will proceed on the terms presently stated in the MOU".

Acromec shares fell 0.8 Singapore cent or 9.64 per cent to S$0.075 on Tuesday before the announcement.