Energtek Inc. (Bulletin Board: EGTK) has set up with DML PTE Ltd. a $25 million joint venture, Energtek Far East PTE, to commercialize adsorbed natural gas (ANG) technology in Southeast Asia.
DML is a private Singapore company that manufactures police boats and plans to build CNG ships and also provides tourism services. The joint venture seeks to market Energtek's proprietary ANG technology to provide clean and affordable energy to industrial consumers and small-vehicle drivers in Indonesia, Malaysia and Singapore. It will also develop natural gas filling terminals and low pressure compression assembly and manufacturing facilities in these countries.
Energtek's ANG technology enables vehicles to use natural gas by solving the problem of storage on the vehicle. Energtek CTO Prof. Yuri Ginzburg developed the technology to absorb natural gas for efficient storage. The system also reduces air pollution and lowers consumption and cost, a factor that is very important for the operators of two and three-wheeled vehicles in Southeast Asia.
Energtek will own 51% of Energtek Far East and DML will own 49%. DML will invest $2 million, and has agreed to finance the venture's business operations with an additional $23 million. Energtek Far East will receive exclusive rights to operate in the area.
This is Energtek's third large contract in the Asia, following a contract in the Philippines and a $50 million contract in India.
Published by Globes [online], Israel business news - www.globes-online.com - on June 26, 2008
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