SINGAPORE (Dec 5): Acromec announced that its 80%-owned subsidiary Acropower has signed a binding letter of intent (LOI) with Chew’s Agriculture to build-own-operate a waste-to-energy power plant using chicken manure as feedstock.
Acromec inks MOU to build organic waste-to-energy plant at Chew's poultry farm
The plant will be built on Chew’s Agriculture upcoming new farm as it relocates to Neo Tiew Road, off Lim Chu Kang.
For a start, Chew's Agriculture will commit to purchase at least 0.5 MWH and scale up should the new farm ramp up its egg production beyond that of its existing farm.
The LOI stipulates that Chew's Agriculture will supply chicken manure to Acropower and in return buy electricity from Acropower for a period of 15 years at a competitive price of no more than a 10% discount to the prevailing Energy Market Authority electricity tariff rate.
Chew’s Agriculture, a former subsidiary of Acromec's Catalist peer Chew's Group, was sold along with three other units to the Huat Lai Group of Malaysia in April for $11 million in cash.
Chew's Group swings into 1H losses after disposal of subsidiaries
Separately, Acromec says it is also in talks for another contract with Chew's on its new farm’s construction.
As Acromec is the designer and builder of facilities requiring controlled environments such as laboratories, sterile medical facilities and cleanrooms, and has not previously undertaken any construction of power plants, the company says it will convene an EGM to seek the approval of its shareholders for its diversification into the renewable energy sector.
Year to date, shares in Acromec are down 63% to 10 cents.
