Darco inks MOU to venture into renewable energy industry

DARCO Water Technologies announced on Wednesday that it has entered into a Memorandum Of Understanding (MOU) with Malaysian firm Mattan Engineering to build and own photovoltaic power plants across South-east Asia as a means to venture into the renewable energy industry.

The integrated environmental solutions provider said that it is keen to explore a partnership with Mattan either on an ownership level or as preferred turnkey contractor.

Under the MOU, both parties are responsible for identifying viable photovoltaic projects, providing detailed information of the projects as well as working on the financial model where each party has the right of first refusal on the photovoltaic projects. Each side will also have to perform due diligence on the respective photovoltaic projects which are identified, and all the initial cost incurred will be borne by the respective parties.

As one of the market players in the renewable energy industry, Mattan will be providing the technical expertise in the construction of a solar photovoltaic energy-generating facility which involves the designs, technical drawings, procurement and project management, said the group.

Thye Kim Meng, Darco's CEO, said: "We have been proactively looking for business opportunities in the environmental protection industry. Collaborating with Mattan to venture into the solar power industry is one of our initiatives to enhance the group's profitability as we see huge growth potential in this industry."