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 employees.
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 commercialisation efforts.
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.
