KUALA LUMPUR (June 21): Techna-X Bhd's wholly-owned subsidiary has entered into a tripartite agreement to develop a 85 acre-microalgae farm and produce algae biofuel.

Its wholly-owned subsidiary Techna-X Aerobeidou Sdn Bhd (TASB) has entered into the agreement on Wednesday (June 21) with technology provider and operator of the farm MYKO Global Sdn Bhd and engineering, procurement, construction and commissioning (EPCC) contractor RTA E&C Sdn Bhd. 

“TASB shall be the investor and internet of things (IoT) technology partner for Malaysia and East Africa, insofar as the RE project is concerned,” Techna-X wrote in a Bursa filing, adding that the project is expected to be producing for a minimum of 30 years. 

It said TASB has committed to investing US$120 million (RM577.4 million), but MYKO will commit to arranging 98% of the US$120 million facility while TASB is obligated to finance the remaining 2%, which works out to US$2.4 million, via a banker guarantee.

“MYKO will provide the technology and patents and will manage the production of the facility, in return [this] will guarantee a minimum of 36,000 metric tonnes of crude algae oil per annum which is equivalent to a net revenue of approximately US$40 million per year.  

“All future investments in Malaysia with MYKO shall be exclusive to TASB who 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 group said the investment proposition serves to provide an opportunity for Techna-X to venture into a green sustainable fuel source with minimal financial outlay and risk.  

Notably, MYKO and RTA have two common shareholders, namely Lee Byungok, who is chief executive officer at both private limited companies, and Wan Nurfazilah Izzudin, who is managing director at RTA and a director at MYKO. 

Lee owns 52% of MYKO and 30% of RTA, while Wan Nurfazilah has a 24% stake in MYKO and a 70% stake in RTA.

Nonetheless, Techna-X said none of its directors and/or major shareholders and/or persons connected with them has any direct or indirect interest in the tripartite agreement.  

On Wednesday, shares of Techna-X settled unchanged at 1.5 sen, valuing the group at RM24.92 million.