Acropower to build waste to energy plant
Acromec Limited, an established specialist engineering service provider in the field of controlled environments serving mainly the healthcare, pharmaceutical, biomedical science, research and academia sectors, today announced that its 80%-owned subsidiary Acropower Pte. Ltd. has signed an agreement with Chew’s Agriculture Pte Ltd for Acropower to build, own and operate a waste-to-energy power plant that will convert poultry waste into energy. The Facility will be built on CAPL’s new farm as it relocates to Neo Tiew Road, off Lim Chu Kang. The Agreement stipulates that the Facility will process and convert waste from the Farm into biogas for use in generating electricity, which will then be supplied back to the Farm for a period of fifteen years at no more than a 10% discount to the prevailing Energy Market Authority electricity tariff rate. CAPL shall at all times purchase the Farm’s electricity requirements from Acropower. The Agreement is expected to result in a diversification of the Group’s business into the renewable energy sector, and will be subject to the approval of its shareholders in a general meeting to be convened in due course. Conditional upon obtaining all shareholders’ and other internal corporate approvals required, construction of the Facility is expected to be completed by 31 March 2020. The Agreement is not expected to have any material impact on the consolidated net tangible assets and earnings per share of the Group for the financial year ending 30 September 2019. At the initial stages, the Facility is committed to supply to the Farm no less than 0.5 megawatts per hour based on processing the daily waste produced by 600,000 egg-laying chickens (“Layers”), although it will have the capacity to provide up to 0.8 megawatt per hour on a daily basis based on processing the daily waste produced by up to 720,000 Layers. […]