KUALA LUMPUR, May 15 — Green Lagoon Technology Sdn Bhd’s reverse takeover of Ancom Logistics Bhd will result in the total decarbonisation of the latter’s holding company Ancom Nylex Bhd.

Ancom Nylex managing director and group CEO Lee Cheun Wei said that the company will be able to recognise about one-fifth of the captured carbon that Green Lagoon has once the takeover is completed, The Edge reported today.

"Based on Green Lagoon’s representation and early discussions, its operations absorb around 500,000 tonnes of carbon dioxide equivalent (CO2e), of which it has an effective ownership of 370,000 tonnes of CO2e.

"As Ancom Nylex will hold at least 21 per cent of the shares in Ancom Logistics post-Green Lagoon acquisition, we will be totally decarbonised, as our carbon emissions last year, including Scope 3 emissions, totalled less than 40,000 tonnes of CO2e,” he was quoted as saying.

Lee also said that beside the 370,000 tonnes of carbon captured, Green Lagoon has also been building up its renewable energy certificates (RECs).

He said the company has RECs that represent about 29,000 tonnes of CO2e a year, from 16 biogas capturing plants.

"Businesses are re-evaluating their carbon emissions, and those companies that could not meet their carbon emissions targets will require RECs,” Lee was quoted as saying.

Green Lagoon is a company that is involved in the development of palm oil mill effluent anaerobic lagoon biogas-to-power projects.

Ancom Nylex is in the business of the manufacturing and sale of agricultural and industrial chemicals, animal health products, polymer products as well as the provision of digital and out-of-home advertising media space.

Ancom Logistics is involved in the transportation of liquid chemical business in Malaysia and Singapore, and owns 51 per cent in Ancom ChemQuest Terminals Sdn Bhd, a company involved in building, owning, operating, leasing and managing a chemical tank farm in West Port, Port Klang.

Ancom Nylex’s single biggest shareholder is Datuk Siew Ka Wei at 19.17 per cent.

Siew is executive chairman of Ancom Nylex and also executive vice-chairman of Ancom Logistics.

Lee sits on Ancom Logistics’ board as a non-independent, non-executive director and holds 8.41 per cent in Ancom Nylex as at September 5, 2023.