Thermo Tech Technologies concludes license agreement with Firmaplus
Thermo Tech Technologies Inc. announced that it has concluded an exclusive master license agreement with Firmaplus Sdn Bhd, a subsidiary of Delta Group of Companies. Delta Group of Companies is a world scale investment firm, based in the Middle East. It has business interests throughout Southeast Asia including Malaysia, Thailand, Indonesia and The Philippines; the Middle East; Europe and the USA.
Firmaplus is headquartered in Malaysia. Firmaplus has committed to an investment of over US$500,000,000 to construct and put into operation at least 27 Thermo Master Plants of 1,200 tonnes per day capacity.
Mr. Charles Miller, CEO of Firmaplus said, "Discussions between several environmental groups and Firmaplus, over the environmental impact of utilizing this method of processing the waste, against landfill, disposal at sea, or incineration have met with a very favorable response."
"Application of the Thermo Master Process to biosolids—the term now used to refer to treated municipal sludge from wastewater treatment plants—yields products of high quality with unique properties that make them more valuable and suitable for land application. Traditional methods dealing with biosolids are to incinerate them or dump into landfill or the ocean, such methods proving both costly in terms of negative environmental impact and poor economics, and most methods of incinerating and dumping have been globally outlawed. Thus we have seen a marked increase in land-spreading of biosolids over the past ten years or so because land-spreading simply offers the best solution," said Miller.
Firmaplus sees huge business opportunity
The licensed territory includes Malaysia, The Philippines, Indonesia and Thailand with a combined population in excess of 378 million. In signing the master license agreement Firmaplus has recognized both the huge business opportunity and environmental need within the region. Opportunities for processing of food based wastes to animal feed and biosolids to fertilizer products are projected by Firmaplus to produce revenues of over US$1,300,000,000 when all 27 plants are operating. Through the royalty program agreed upon, Thermo Tech receives 5% of gross revenue and 10% of profits realized. When Firmaplus has brought its 27 plants into production this agreement is projected by the Licensee to deliver annual revenue to Thermo Tech of US$180 million. The license agreement is for 10 years, renewable. The parties are committed to begin immediately to bring the first plants to operation. Firmaplus plans to have all 27 plants underway over the coming two years.
Firmaplus has committed to invest the US$500,000,000 required to construct the 27 plants it has projected as being required within the licensed territory. For this reason, the parties have agreed, within the agreement, to a nominal license fee of US$1 million. Firmaplus has committed to a minimum of 27 plants but could definitely build more.
Malaysian palm oil industry to be starting point
Firmaplus has identified the palm oil industry of Malaysia as its starting point. This industry disposes of organic processing waste of over 30 million tonnes per year made up of over 10 million tonnes per year of "empty fruit bunches" and more than 20 million tonnes of palm oil effluent or residue which remains after oil extraction. There are also millions of tonnes of such waste stockpiled and waiting for disposal.
Animal feed and fertilizer markets in the region are projected by Firmaplus to produce high returns, in the range of US$45-48 million per plant on an annual basis. This has been confirmed by Firmaplus upon completion of their due diligence process.
Source: Thermo TechTechnologies Inc.
Edited by Kate Goff
Managing Editor, Solid Waste Online