Innopac forms JV to grow microalgae in Singapore

[Singapore] Innopac Holdings, which has a 90 per cent equity stake in a natural gas distribution company in Dezhou, China, as well as investments in the real estate, property development and equities domains, has formed a joint venture (JV) with Primeforth Renewable Energy to commercially cultivate micro algae.

Innopac will provide the initial capital investment, as well as assist in business development and financial management. Primeforth will focus on operational management of the project and function as the technology partner in the JV. This is part of an exploration of the biofuels sector, which holds significant potential.

This JV will engage downstream industry activities, including the production of biofuel, pharmaceuticals and nutraceuticals. This is a strategic decision, given that microalgae is a sustainable and renewable source of bio-crude and its extensive use across multiple sectors (i.e. pharmaceuticals, nutraceuticals, cosmetics and aquaculture).

Microalgae bio-crude can also be used in the production of fuels including gasoline, diesel and jet fuel. Given its reliance on biological inputs, it also serve as a renewable, cost-efficient solution to crude oil.

According to a media release, Primeforth is headed by Peter Kim Jae Hoon, a US national of South Korean descent who holds six patents for the cultivation and harvesting of microalgae and is experienced in the construction and operation of bio-diesel production plants in Japan, South Korea and the USA.

The 70:30 JV has an issued share capital of S$1 million (US$792,000) and will cultivate and process microalgae using proprietary Primeforth technologies recovery of algae oil will be prioritised and will see the development of a Singapore-based facility, with expansion into Malaysia at a future date.

Commenting on the transaction, Wong Chin Yong, managing director and CEO of Innopac said,“The demand for clean fuel is always there, but the issue is to provide it at a price which makes it competitive as compared to traditional fuels. In this regard, this JV’s cost-efficiencies will enable us to provide an attractive alternative to conventional fuels.”

 

View original article at: Singapore dealbook: Innopac JV to grow microalgae

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