On Sept 1, Shanaya Environmental Services (SES) signed a business collaboration agreement with Alpha Grace Enviro-Tech (AGE) to jointly promote and market the AMP System globally.
The AMP system is a waste treatment system that is able to treat various kinds of waste, including but not limited to industrial, commercial, municipal, toxic, and biomedical waste, and transform them into recovered energy and ash for safe disposal.
The system is a proprietary plasma waste treatment system owned by AGE and has a track record of developing, designing, engineering, building and operating it in Singapore and China. It is capable of treating approximately 1 to 5 metric tons of industrial, commercial, municipal and biomedical waste per day.
Moreover, the AMP System converts 100% of contaminated and unwanted solid waste into approximately 5% safe ash. The residual ash can then be recycled into green building material or as an agricultural mixture. As a result, the system generates energy recovery in the form of electricity or heat while processing waste in an environmentally safe and green manner.
This collaboration involves AGE delivering and setting up an AMP System at SES’s premises located at 27 Kian Teck Drive for demonstration purposes over a trial period of 1 year.
In hosting the demonstration, SES shall provide the requisite supply of utilities, diesel, feed waste, including but not limited to general waste, toxic waste and biomedical waste, consumables and manpower to operate it during the commissioning, test run and demonstration.
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Following the trial period, SES shall be granted an option to acquire the demonstration set at a price to be mutually agreed upon, taking into account SES’s assessment of the system’s performance, feasibility and treatment capacity and subject to approval being obtained from relevant authorities.
SES also stands to earn royalty for every AMP System sold based on agreed percentages of the sales invoice value over a five-year period from date of successful commissioning of the demonstration set.
During the trial period, AGE may introduce new clients to SES at an agreed introduction fee or commission fee to support SES’s new business in the provision of biomedical waste management services.
The agreement shall take effect for five years from the date of signing with the option for extension by mutual agreement of SES and AGE, where it can only be terminated if either party experiences circumstances of financial exigency that would affect its ability to participate in the agreement.
SES’ entry into this agreement is not expected to have a material impact on the earnings per share or net tangible assets per share of the group for the current financial year ending Dec 31.
Shares in SES closed flat at 10 cents on Sept 1.
