- Enters into a strategic partnership which gives Sembcorp preferential and early access to proprietary technologies
SINGAPORE, July 1, 2013 - Sembcorp Industries
(Sembcorp) announces that its wholly-owned subsidiary, Sembcorp
Utilities, has signed an agreement to invest NOK30 million
(approximately S$6.4 million) in Biowater Technology (Biowater), a
Norwegian-based company that designs and engineers innovative
technologies and solutions for the treatment of municipal and industrial
wastewater. Upon completion of the transaction, Sembcorp will own 28.8%
of Biowater, with the remaining stake held by existing shareholders
Incitia Ventures II, Mallin Venture and Biowater’s founders and
Existing investors in Biowater, Incitia Ventures II and Mallin
Venture, will concurrently be investing a further NOK8 million,
resulting in a total of NOK38 million of new capital raised for Biowater
to fund its continued research and development (R&D) work and
In addition to the equity investment, Sembcorp will also enter into a
Strategic Partnership Agreement with Biowater, which will give Sembcorp
preferential and early access to its technologies and at the same time,
provide Biowater access to Sembcorp’s global facilities to accelerate
the development and commercialisation of its technologies.
Biowater is recognised as an innovative industry leader in biological
wastewater treatment and has developed its own proprietary
technologies, such as the Complete Mix Fixed Film (CMFF®) and Combined
Fixed Film Activated Sludge (CFAS®), which are commercially available in
the market. The company also continues to innovate and develop new
patented technologies, namely the Continuous Flow Intermittent Cleaning
(CFIC®) and the Hybrid Vertical Anaerobic Biofilm Bioreactor (HyVAB®).
The use of CFIC® in wastewater treatment can bring about substantial
reduction in energy consumption of up to 20% to 30%, as well as savings
in capital expenditure of up to 25%, compared to conventional Moving Bed
Biofilm Reactor (MBBR) technology. Pilot tests have been completed for
CFIC® and the technology is currently in its commercialisation phase.
Meanwhile, HyVAB® has the potential to be a game-changer in the
industrial wastewater treatment industry and can result in even greater
cost savings from power efficiencies and lower sludge production. HyVAB®
is currently under development at the pilot phase with commercial
application expected in 2015.
For Sembcorp, these technologies could be harnessed to improve the
efficiency and performance of existing plants. With over seven million
cubic metres per day of water in operation and under development
worldwide, of which almost 340,000 cubic metres per day come from
wastewater treatment, the application of CFIC® could bring significant
cost savings for Sembcorp and enhance our competitiveness. The use of
such advanced and innovative technologies can also give us a substantial
competitive edge when bidding for new projects and has the potential to
help Sembcorp grow our industrial wastewater treatment business,
particularly in Asia.
As part of the strategic partnership, Sembcorp will apply CFIC® on a
full scale in some of its water plants worldwide, as reference projects
to help accelerate the commercialisation of the technology. This
collaboration hence gives Biowater the opportunity to apply its
technologies in Sembcorp’s global portfolio of water and wastewater
projects, as well as obtain feedback based on Sembcorp’s operational
knowledge and experience to facilitate development and commercialisation
of its technologies.
Commenting on the investment, Tang Kin Fei, Group President & CEO
of Sembcorp, said, “This investment will strengthen our technological
capabilities and cement our leading position in the treatment of
multiple streams of complex industrial wastewater. As a company that is
focused on innovation, process and technology, this partnership not only
enables us to enhance the efficiency of our operations, but also allows
us to continuously offer competitive solutions to our customers.
“We are excited about the opportunities that this partnership will
bring to Sembcorp, given Biowater’s innovation and R&D capabilities.
With our 33 water operations across 11 countries worldwide, we will
also be able to help Biowater expedite the development and
commercialisation of its technologies and accelerate our growth in the
wastewater treatment business. With our complementary capabilities, we
look forward to a successful and fruitful partnership with Biowater.”
Collaboration is also expected at Sembcorp’s new technology and
innovation centre, which is targeted to start up by the end of this
year. Located at the Banyan area of Jurong Island, Singapore’s
petrochemicals and chemicals hub, the centre will enable Sembcorp to
support the development of HyVAB®, and future new technologies, by
running test-beds and pilot tests there. The new technology and
innovation centre will comprise laboratories and applied R&D
facilities, and house our researchers and engineers who will develop and
integrate innovative processes and run test-beds for emerging
technologies relevant to our Utilities business.
Audun Lødemel, CEO of Biowater, said, “We are very pleased to have
Sembcorp as an investor as they are an important strategic partner going
forward, especially with their expertise and insight for the Asian
market. This enables us to address large emerging markets and continue
to develop the company, including new solutions for our customers.
Sembcorp presents valuable commercialisation opportunities for our
technologies through their global facilities and market knowledge, and
we look forward to working with them.”
The investment amount was arrived at based on negotiations with
Biowater and its existing shareholders. Sembcorp will fund the
investment through internal resources. The transaction is expected to be
completed upon the injection of capital from Sembcorp by July 9, 2013.
This transaction is not expected to have a material impact on the
earnings per share and net asset value per share of Sembcorp Industries
for the current financial year.
Investment Idea: City Developments Limited - We would just like to thank everyone who participated in last night’s InvestingNook LIVE Webinar. Many who were unable to attend requested for a replay of ...
3 hours ago