Tejoori Limited (TJI.L) the London (AIM) listed, Dubai headquartered investment company has entered into an agreement to invest EUR 6 million (Dhs28.67m) to acquire a 16.7% interest in BEKON, the holding company of a group focused on the development, construction, marketing and operation of biogas, energy and waste treatment plants.
BEKON has developed two proprietary technologies enabling Dry-Fermentation. Both technologies are based on BEKON’s protected Dry-Fermentation process allowing it to design, establish and operate biogas plants. Dry-Fermentation is a process where renewable energy is created by converting biodegradable waste into electricity. The two technologies are: ‘In-Box Fermentation’ which derives biogas from organic material from municipal collection systems, and; ‘Circle-Fermentation’, which focuses on agricultural waste and products to create biogas. Biogas is one of the most efficient sources of renewable energy.
Both types of Dry-Fermentation offer significant advantages to the existing widely used wet fermentation process of converting biomass to biogas. The advantages of dry-fermentation over wet-fermentation include lower operating and maintenance costs, lower water consumption and the ability to use remote controlled operations promoting safety and efficiency.
Tejoori will inject up to EUR 3 million (Dhs14.33m) to buyout an existing shareholding and inject an additional EUR 3 million (Dhs14.33m) in equity to meet the global expansion and working capital needs of BEKON.
This Shari’a compliant and socially responsible investment follows further recent investments made by Tejoori that are intended to both generate an attractive return for the company as well as contribute to a more healthy society.
BEKON was founded in 1998 and in 2002 built its first biogas proof of concept plant for the municipality of Munich. Having met functionality, reliability and profitability performance criteria in each of the last three years, BEKON sold the plant to the Municipality of Munich and has entered into an agreement with them to expand its capacity from 8,500 tons of organic waste disposal per year to 25,000 tons.
This proof of concept has caused many municipalities and organisations to take interest. BEKON has signed contracts with a value in excess of EUR 15 million (Dhs71m) throughout Europe benefiting from the increasing demands and evolving legal environment towards more efficient renewable energy technologies.
Tejoori is the first independent and international company dealing with Shari’a compliant investments to be listed on AIM. Tejoori’s investment policy is centered on the principles of Shari’a compliant investing. Tejoori also actively considers investments that are socially responsible. This unique investment approach is not limited by geography or sector but by the quality and potential of the investment and its contribution to society.
Commenting on the investment Sheikh Fawaz Bashraheel, Chairman of Tejoori Limited said, “Governments in Europe are encouraging the development and deployment of renewable forms of energy. This is increasingly becoming a global trend. Our involvement in this deal benefits the further development in both renewable energy and waste management technologies. We are committed to investing in newer and greener technologies which can provide alternative and renewable solutions to the world’s ever increasing energy needs.”
Steffen Schubert, Managing Director of Tejoori added, “Biogas is one of the most efficient sources of renewable energy and BEKON has developed proprietary processes that put its technology at the forefront of this vital industry. With predictions from the German Biogas Association that global sales of biogas facilities to be between EUR 7.5-10 billion by 2010, we believe that our investment in BEKON is both relevant and timely.”
Peter Lutz, Chief Executive of BEKON said, “After proving the validity of the BEKON Dry-Fermentation process and gaining increasing market acceptance, our exposure in the world market is escalating. Tejoori, with its long-term view and its commitment to socially responsible investing, gave us the chance to team up with a partner to reach our ambitious goals.”
