Under the joint venture agreement, PAK and Global Hydro would form a new Singapore-based joint venture company named as Global Pacific Hydro (GP Hydro), in which PAK and Global Hydro will each hold a 50% ownership.

New venture GP Hydro will focus on micro hydro and hybrid projects in the Pacific Region including Australia, through the introduction of Global Hydro products to these markets.

PAK said that initially it would invest a minimum of $50,000 to establish the new venture, and if required, would further invest a total of up to $500,000 in separate tranches, tied to achieving specific milestones.

PAK chairman Geoff Hill said: “This is a very exciting initiative for PAK and our shareholders. The board has been reviewing additional investment opportunities for some time and identified renewable energy as a priority due to its high growth potential.

“We now have a leading technology partner and clear business strategy to grow an alternative energy business focused on hydro and hybrid projects with a low risk, high impact, entry strategy.”

PAK has been working with Global Hydro to develop a joint business plan which can take advantage of Global Hydro’s advanced micro hydro technology (SmarT) and PAK’s project development and regional knowledge.

Under the joint venture, Global Hydro’s technology will be developed and adapted for local environmental situations, along with exploring the addition of accessory products like battery storage, wind or solar power with Global Hydro products.

GP Hydro is engaged in the design, manufacture and installation of turbines and hydro plants with capacities ranging from 100kW to 25MW. It is also claimed to possess well-defined regional marketing strategy which will focus on hybrid and micro grid projects as well as pumped hydro opportunities in Australia, PNG and the Pacific Islands.

PAK, in a statement, said: “With group global sales of +USD100m across the hydro space, Global Hydro provides PAK with a world class technology partner which will enable the joint venture to commencing business with a proven product that has been de-risked in various projects across the globe.”