Will collaborate with Verde Resources on catalytic biofraction green technology initiatives
Borneo Oil Berhad (Bornoil), through its indirect wholly-owned subsidiary, Borneo Energy Sdn Bhd (BOE), entered into a sale and purchase agreement with Gold Billion Global Limited (GBG) for the disposal of technology assets and intellectual property rights for a total consideration of US$5 million.
In return, BOE would receive 166,666,667 new ordinary shares of Verde Resources Incorporated (Verde), a Nevada USA corporation listed on the OTCQB market. GBG is a wholly-owned subsidiary of Verde.
BOE is the exclusive licensee of a technology known as Catalytic Biofraction for Sabah, while also owning and operating a plant utilising this process that converts oil palm biomass into biochar, biofuel, biogas and pyroligneous acid.
BornOil executive director Raymond Teo said that the collaboration with Verde would enable the group to penetrate the US market where global investors have been demanding socially and environmentally conscious options and stocks related to green sustainable products.
“In recent times, this trend had been growing rapidly, further enhanced by the new US administration and its commitment towards the climate agenda as laid out in the Paris Climate Agreement in which President Biden emphasised during the recent Virtual Climate Summit,” said Raymond.
Under the Biden Administration, the proposal of a US$2.25 trillion infrastructure plan will focus on green energy and decarbonisation.
“Investors in the United States market are more receptive to green investing options, and this trend is showing no signs of slowing down.
“The proposed disposal represents an excellent opportunity for the BornOil Group to capitalise on this trend as well as access investors funds,” added Raymond.
Meanwhile, Verde president Balakrishnan Muthu said that the group plans to invest heavily in research and development. It believes that palm oil biomass waste could be monetised with the right processes and technologies.
“In the United States where Verde is listed, the palm oil industry does not have a good reputation. We aim to do our part to progressively change that negative perception,” said Balakrishnan, a Malaysian.
“This technology can convert widely available oil palm biomass into by-products such as biochar which is now proven to be an effective way to sequester carbon from the atmosphere.
“Recently even Tesla’s Elon Musk announced a US$100 million reward for the best carbon sequestration technology.”
He explained that the group’s interest in catalytic biofraction green technology stems from insights received about the potential of palm oil waste.
“We believe that the efficiency of palm oil waste, comprising mainly empty fruit bunches (EFB) and palm kernel shells (PKS), can be further upcycled with green sustainable advanced processes and technologies,” said Balakrishnan. — @green