16 Mar 2021 07:00
16 March 2021
BiON plc
("BiON" or "the Company")
Business Update and Directorate Change
Two biogas power plants now supplying electricity to the grid and BiON expands into the UK
BiON (AIM: BION), an environmental engineering, wastewater treatment and renewable energy solutions company, provides an update on its operational progress, including announcing that it has established an office in the UK, and gives notice of directorate and senior management changes.
Business update
The Company is pleased to report progress on its four biogas power plants - two of which are now selling electricity to Tenaga Nasional Berhad ("TNB"), Malaysia's largest integrated electricity company. Once fully-operational, BiON's current portfolio of biogas power plants, which generate electricity from the biogas produced in the treatment of palm oil mill effluent ("POME"), will have an installed capacity of 7MW.
· Seberang Perak (2MW) commenced commercial operations at the end of January 2021 following the receipt of the certificate of initial operation date ("IOD") from the regulatory authorities. The IOD enables the Company to sell electricity to TNB at a discount tariff rate. It expects to receive the certificate of commercial operation date ("COD"), which will allow it to receive the full Feed-in-Tariff rate, later this month subject to government restrictions related to the COVID-19 pandemic.
· Malpom (2MW) recommenced supplying electricity to TNB in December 2020 (at an initial reduced capacity). Upgrading works are continuing to enable an increase in power generation to reach maximum capacity.
· Solid progress was achieved in upgrading works at Kahang (2MW) with gas production reaching almost maximum capacity in February 2021. Kahang will recommence supplying power to the grid following testing by TNB of electrical interconnection equipment, which is expected in the coming months.
· Nasaruddin (1MW) has resumed operations following a temporary shutdown at the adjoining palm oil mill as a result of COVID-19. The Company is awaiting the receipt of an IOD to enable power sales to commence, which it expects to occur in the coming weeks subject to government pandemic-related restrictions.
The Company has also continued to provide EPCC services in Malaysia as well as in Indonesia.
Expansion into the UK
BiON has achieved a key milestone in its strategy to expand globally with the opening of an office in London, UK - its first outside of Malaysia - and the appointment of a UK Country Manager.
The establishment of a presence in the UK is to facilitate BiON in expanding its business into the UK and Europe, a market that the Company believes offers ample opportunity due to the relative maturity of the renewable energy and clean technology sectors in this region. In particular, the Company intends to add to its portfolio of waste-to-energy assets as well as seek potential partners or customers for its EPCC services or, in future, other biomass products. The UK Country Manager is also responsible for supporting the Company's investor relations function.
The Company has appointed Elle Sia as UK Country Manager who brings significant capital markets experience, with a sector focus on engineering, technology and oil & gas. Most recently, she was Assistant Vice President of Equity Capital Markets at Affin Hwang Investment Bank in Malaysia where she focused on deal origination and execution. This included running an IPO in August 2020 that was Malaysia's best performing IPO since July 2018 and, in April 2020, conducting Malaysia's largest private placement since January 2018, which was for Serba Dinamik, a significant shareholder of the Company. Prior to joining Affin Hwang Investment Bank, Elle was an Associate at BNP Paribas where she was responsible for expanding the bank's financial institutions coverage and also participated in global cross-border client activities and transactions. Elle holds a BSc in Financial Economics from the University of Kent, UK.
Directorate and Senior Management Changes
Further to the Company's announcement of 13 November 2020, BiON gives notice that Datuk Haji Radzali Hassan has stepped down from his position as Non-executive Director with immediate effect. In addition, Mr Halian Fadzli Shah has resigned from his position as Chief Administrative Officer to pursue other interests.
Datuk Syed Nazim bin Syed Faisal, CEO of BiON, said:
"I am pleased that we now have two of our biogas power plants selling electricity to the grid - and hope to soon be exporting power from all four plants and at maximum capacity. We have also continued with our EPCC work and to take steps to execute our strategy. In this regard, I am delighted that we have now opened our UK office and appointed Elle Sia as UK Country Manager. She brings tremendous experience of generating deals in this sector, which will prove invaluable as we seek to expand our presence in the UK and into Europe, as well as a deep understanding of the capital markets. We are excited about this opportunity and look forward to reporting on our progress.
"In addition, on behalf of the Board, I would like to thank Datuk Radzali and Halian Fadzli for their service to the Company. In particular, Datuk Radzali played an instrumental role as Chairman when the Company started its life on AIM, for which we are very grateful. We wish them all the best for the future."
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014 which is part of UK law by virtue of the European Union (Withdrawal) Act 2018.
Enquiries:
BiON plc
Datuk Syed Nazim bin Syed Faisal, CEO +603 6413 1085
Fakrizzaki Ghazali, CFO
www.bionplc.com
Beaumont Cornish Limited (Nominated Adviser)
Roland Cornish, Felicity Geidt +44 20 7628 3396
Optiva Securities Limited (Broker)
Vishal Balasingham +44 20 3137 1903
Luther Pendragon (Financial PR Adviser)
Claire Norbury +44 20 7618 9100