Engineering 101

Converting Poultry Waste Into Energy

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Established specialist engineering service provider in the field of controlled environments, ACROMEC, has announced that its 80% owned subsidiary Acropower has signed an agreement with Chew’s Agriculture, 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 ten percent 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 31st 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, 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 laying chickens.

The agreement further binds CAPL to scale up its initial production size within five years beyond 720,000 laying chickens, but not exceeding 1,500,000 laying chickens. Barring unforeseen circumstances, this is expected to increase the income stream of Acropower as CAPL consumes more electricity generated by the facility in its expansion. Currently, the infrastructure at the farm has already catered for higher production levels from the initial production size.

Commenting on the Agreement, Lim Say Chin, Executive Chairman and Managing Director of ACROMEC, said: “This project is a win-win situation for both parties. Disposal of animal waste is a costly issue for farms, and by converting it into energy, ACROMEC is expected to benefit from an economic view point and will also be contributing towards protection of Singapore’s environment.”

The project will expand the horizon of our value chain for our controlled environments engineering business, and will differentiate us from our competitors.

The Group has been working on its expansion and diversification strategy into the renewable energy sector which it believes will provide sustainable revenue and income streams.

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