GUELPH, Ontario, Feb. 5, 2013 /PRNewswire/ -- W2 Energy, Inc. (OTC: WTWO) is pleased to report it has signed a binding memorandum agreement to purchase 51% of AM Biofuels http://www.ambiofuels.com.my of Pasir Gudang Port of Johor Malaysia.
The company has signed and Memorandum Of Understanding (MOU) to buy 51% of the company from the shareholders of AM Biofuels.
This strategic acquisition expands W2 Energy's fuel business in South East Asia as the company continues to execute on is business plan of production, blending and distribution of bio and synthetic fuels.
AM Biodiesel's plant, licensed under Malaysian Palm Oil Council, has the capacity of 30,000 Metric Tons per year of Biodiesel production. The plant is a multi feedstock technology based on the esterification process. AM Biofuels was fully commissioned in end of 2010. The plant is currently in operation and plans to produce 20,000 MT of Palm biodiesel within 2103.
The company is located in Pasir Gudang Port of Johor Malaysia, which is one of the biggest Oleo Chemical centers in Asia. The factory is situated on a 10,000 sq. meters of prime land, within the port of Pasir Gudang vicinity, in the Pasir Gudang industrial zone. Pasir Gudang Port is facing Singapore, and only 30 kilometers away from Singapore border. Singapore is the world largest trading hub for oils, petrochemicals, and biofuel.
In addition to the biodiesel refinery, the Plant has several other useful facilities, 6 storage tanks of 300 MT each, 6 tanks for Bunker Oil of 20,000 liters each, 2 covered warehouses of approximately 2,000 sq. meters each. W2 Energy intends to commission and operate a Coal/Water/Biodiesel Slurry fuel production plant directly on the site.
Mr. Michael McLaren, CEO of W2 Energy, states, "Another strategic acquisition put in place by Dr. Wan Hasni, our new CFO. With AM Biofuels and Ecobound fuel production systems, W2 Energy is poised to enter the 'clean fuel market' of Asia. Malaysia consumes about 50,000 barrels of fuel oils per day while Indonesia consumes about 200,000 barrels per day of fuel oils. The South East Asian region in total consumes about 500,000 barrels per day of fuel oil. W2 Energy will install and commission a #6 fuel oil replacement plant on the site and distribute the product through Ecobound Fuel Production Systems production license."
The acquisition is valued at $5,500,000 US and W2 energy will receive a total of 51% shares of AM Biofuels for 55,000,000 W2 Energy shares at a deemed value of US 0.10 cents per share.
The agreement also states the parties have agreed to complete and further due diligence, consents and approvals and execute the SPA (Stock Purchase Agreement) within 60 days of signing the MOU.
About W2 Energy:
W2 Energy Inc. develops renewable energy technologies and applies it to new generation power systems. Specifically, W2 Energy's plasma assisted bio-mass to energy plants, utilizing the state of the art technologies to produce green energy in both fuel (sulfur free diesel) and electricity at the most efficient cost in capital investment and production per/barrel, per/Megawatt. W2 Energy Inc. has seasoned management, cutting edge technology and owns a large technology portfolio of patents and know-how that has been extensively validated and ready for commercial production.
For more information on W2 Energy please see www.w2energy.com.
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For further information please contact:
W2 Energy Public Relations and Shareholder Information
W2 Energy Inc.
Phone: (519) 800-7556
SOURCE W2 Energy, Inc.