KUALA LUMPUR: Techna-X Bhd's wholly-owned subsidiary, Techna-X AeroBeidou Sdn Bhd (TASB), has entered into a tripartite agreement with MYKO Global Sdn Bhd and RTA E&C Sdn Bhd to establish an 85-acre microalgae farm and manufacture algae biofuel.
The facility will produce at least 36,000 metric tonnes of crude algae oil for biofuel per year and is projected to generate a net annual revenue of roughly US$40 million, the company said.
The project is anticipated to produce for at least 30 years, Techna-X said in a Bursa filing.
It said TASB has pledged to contribute US$120 million (RM577.4 million). MYKO will arrange for 98 per cent of the financing, while TASB is required to provide a banker guarantee for the remaining two per cent, or US$2.4 million, of the financing.
TASB shall be the investor and internet of things (IoT) technology partner for Malaysia and East Africa, insofar as the RE project is concerned.
"MYKO will provide the technology and patents and will manage the production of the facility. All future investments in Malaysia with MYKO shall be exclusive to TASB, which shall have the option to expand the development agreement at similar terms upon the successful deployment of the first 85-acre module," Techna-X said.
The company said in line with its strategic commitment to becoming part of the solution for climate change, it recognises the critical role renewable energy and carbon capture technology can play.
"Our involvement in this project underscores our determination to contribute to the global climate change agenda and help achieve the goals of carbon neutrality," said its executive chairman, Tunku Naquiyuddin Tuanku Ja'afar.
He said the field of renewable energy is expanding quickly, and microalgae biofuel represents a huge prospect.
"This (tripartite) agreement allows TECHNA-X to partner with the world's first and currently the only algae cultivation company to be certified by the International Sustainability Carbon Certification (ISCC), signifying our commitment to reducing GHG emissions, promoting sustainable land use, traceability, the protection of natural biospheres, and ensuring social sustainability," he said.
After the successful deployment of the first 85 acre module, TASB will have the first right of refusal to expand the development agreement with MYKO at similar terms.