The environmental engineering, wastewater treatment, and renewable energy solutions firm signed several non-binding memorandums of understanding (MoUs) with three parties with complementary expertise and resources in the biogas industry in Malaysia.
The parties will now seek to enter formal partnerships to enable a ‘significant’ strengthening and expansion of BiON’s biogas and broader waste-to-energy activities.
BiON, through its wholly-owned subsidiaries, BiON Ventures Sdn Bhd (BVSB) and BiON, has signed MOUs with:
- Green Lagoon Technology (GLT), a developer of biogas power plants for customers and those that are wholly-owned, with a specialisation in in-ground bioreactor systems. The firm currently has four grid-connected biogas plants generating a total of 6 MW
- LIPP Engineering (LIPP), an engineering, procurement and construction firm focused on generating renewable energy from various biomass or waste sources utilising its German-developed technology. Further, through a subsidiary company, LIPP has strong manufacturing capabilities enabling it to produce advanced equipment and machinery
- SIRIM Tech Venture (SIRIM), a government organisation established to promote technological advancement and adoption to drive industrial efficiency and development in Malaysia.
Syed Nazim bin Syed Faisal, CEO of BiON, said: “We are delighted to have entered these three MOUs that we believe will accelerate the expansion of our activities.
“Each member of this consortium – with BiON at the centre – brings different, but complementary, resources and expertise, which, together, provide critical mass to enable us to drive forward not only our own business but the development of the biogas and broader waste-to-energy industry in Malaysia.
“As we have said previously, a key element of our growth strategy is to form strategic partnerships and joint ventures and this is the important first step in the delivery of that plan.
“We look forward to working with our new partners and reporting on our progress.”
Under the terms of BiON’s agreement with GLT, the parties will seek to formalise a partnership that is expected to involve the establishment of a special purpose vehicle (SPV) (55% owned by BiON with a majority board control) that would own and operate the entire biogas assets of both firms, valued for the purposes of the transaction at RM53.9 million (€11.1 million) for BVSB and RM61.1 million (€12.5 million) for GLT.
BVSB will be responsible for raising the funds to meet the requirements of SPV and GLT will be responsible for managing all biogas plant projects, including current pipeline and future biogas plant projects.
BiON will also work with LIPP and SIRIM to explore potential waste-to-energy opportunities, including biogas, that would be of mutual benefit and which can leverage the resources of both parties.
The company’s partnership with SIRIM includes the joint establishment of a bioenergy hub for the commercialisation of agricultural and industrial waste.