[Malaysia, Singapore] Magnus Energy Group’s wholly-owned subsidiary Meg Management has entered into an agreement with Algae Farm Engineering to build and manage a mircoalgae oil cultivation facility in Selangor, Malaysia.
Algae Farm Engineering, which has four employees, has grown microalgae, processed the microalgae into bio-oil and proven that the oil runs on a generator, said Magnus Energy.
Shares of Magnus Energy are down 50% to 0.1 cent at 11.23am after the group on Wednesday night announced it is taking a plunge into microalgae cultivation in Malaysia.
The company on Wednesday said wholly-owned subsidiary MEG Management Sdn Bhd had entered into an engineering, procurement and construction contract as well as an operation and maintenance agreement with Algae Farm Engineering Sdn Bhd to build and manage a microalgae oil cultivation on facility in Selangor.
MEG Management also separately entered into a patent licencing agreement on Tuesday with Kim Jae Hoon, the founder and director of Algae Farm, for the use of patents on both the cultivation of microalgae and the harvesting machine in this plant.
Algae Farm is a company incorporated in the Malaysia, and is principally engaged in microalgae oil cultivation and processing. The company has successfully grown microalgae in Malaysia and has successfully processed the microalgae into bio-oil which it claims can “power a generator”.
Algae Farm obtained the legal rights for the use of the patents from Kim, who is also the majority shareholder of Algae Farm.
Magnus Energy says this is part of the group’s effort to diversify into renewable energy and the project presents an excellent opportunity for the group to cultivate its very own source of oil which is highly in demand by the renewable source power producers, pharmaceutical industry and food industry.
The by-product from the algae oil processing can also be sold to the animal feed industry which would add to the income of this project.
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