SINGAPORE - Engineering firm Acromec on Tuesday (March 27) announced that its 80 per cent subsidiary, Acropower, has signed a memorandum of understanding (MOU) with HL Plus for Acropower to build, own and operate an organic waste-to-energy plant on the future poultry farm site of Chew's Agriculture at Neo Tiew Road, off Lim Chu Kang.

Meanwhile, HL Plus is in the process of acquiring Chew's Agriculture.

Acropower is a 80:20 venture with Malaysian alternative energy firm Green Energy Resources.

The deal will allow Chew's Agriculture to dispose its waste at a much lower cost. Under the MOU, Chew's Agriculture will deliver an estimated 70 tonnes of chicken manure to the plant daily for Acropower to treat and convert into biogas which, in turn, will be used to generate electricity.

Acropower will benefit from its sale of electricity back to the farm at a rate no higher than what Singapore Power charges.

Under the MOU, Acropower will also build, own, operate and maintain the plant at its own costs, and Chew's Agriculture will charge Acropower an annual rental fee, at rates to be negotiated between both parties.

Lim Say Chin, executive chairman and managing director of Acromec, said that with this proposed project, the firm's advancement into the renewable energy sector "is progressing as planned and is the culmination of recent steps taken to realise the company's renewable energy strategy".

Acromec's renewable energy journey started in February 2018, when it signed an MOU with Green Energy Resources to tap the synergy of their respective expertise in controlled environments and green energy.

This was followed by the setting up of Acropower in March 2018 to further collaborate.

Mr Lim added that he is confident that the MOU will yield definitive sale and purchase agreements, and he hopes to replicate the firm's renewable energy model across Singapore and the region.