Ripasso Energy presents unique solution for flare- and residual industrial gas combustion with record low LCOE of $21.7 per MWh
Ripasso Energy today presents PWR BLOK 400-F, a container-based solution in which the company’s Stirling engines are used to harness energy from residual gas combustion and flare gas, allowing significant electricity and cost savings to industries. The initial response from potential customers in the South African and Chinese ferrochrome industry has been very positive, and the company has identified a significant market potential.
Ripasso Energy and Finwire Media has jointly produced an infomercial regarding Ripasso PWR BLOK 400-F. It is available at the webpage of the company.
Many industrial applications produce by-products in the form of gases (residual gas) that are currently burned off without harnessing their energy. Residual gas is generally of uneven quality, meaning that internal combustion engines have a hard time handling the conditions that residual gas presents. The Stirling engine is unique in its high-efficiency and external combustion design, making it virtually indifferent to the type of gas being burned and to the quality of the gas in question. With the PWR BLOK 400-F, Ripasso Energy has developed a product in which the company’s Stirling engines are installed in a container that can be deployed cost-effectively in facilities where residual gas combustion occurs.
Ripasso Energy has identified the ferrochrome industry as a good initial market, given that it is electricity-intensive and generates significant volumes of residual gas that currently need to be burned off. During the third quarter of this year, Ripasso Energy tested its Stirling engines for the combustion of this type of gas, with very good results.
South Africa accounts for one third of the worldwide ferrochrome industry. Ripasso Energy has been in South Africa for over five years with its test facility in Upington, and has built up a broad network in the energy sector. Ripasso Energy’s management team recently met several of the major players in the ferrochrome industry, and its presentation of the product generated a very positive response. At the price Ripasso Energy is able to offer, a customer’s payback period for the PWR BLOK 400-F is about three years. The company estimates the technology’s service life at 25 years as a minimum, allowing customers to reduce the volume of electricity purchased from the grid by up to 15 percent. South Africa generates 87% of all its electricity from fossil fuels, based on numbers from Eskom, resulting in high carbon dioxide emissions. The reduced electricity consumption made possible by Ripasso Energy’s technology would entail an annual 3500-tonne reduction in carbon dioxide emissions per PWR BLOK installed.
The South African ferrochrome industry alone harbours a market potential of 250MW, according to an expert on the South African ferrochrome industry retained by the company. 250MW corresponds to 625 PWR BLOK 400-F units. Ripasso Energy’s indicative price for a PWR BLOK 400-F is $580,000 per 0.4MW unit. At this price, the customer’s total cost for electricity over a 25-year period drops to $21.7/MWh. This is a record low for renewable energy.
Ripasso Energy has received several requests for firm quotes for PWR BLOK 400-F from ferrochrome companies in both South Africa and China, but does not as yet have any binding orders. It is Ripasso Energy’s assessment that there is a high probability of booking an order in the near future. The time between order placement and when Ripasso Energy begins to receive revenue from the deal is estimated at around 12 months.
The PWR BLOK 400-F is the first product offered by Ripasso Energy for the residual gas market. The worldwide volume of residual gas burned each year contains potential energy corresponding to the electricity consumption of the entire African continent (OPEC Bulletin 5/15). Ripasso Energy sees significant potential for the PWR BLOK 400-F, and for further iterations of the product, to capture significant market share on this market.
For additional information related to this press release, please contact Ripasso Energy’s CEO and founder Gunnar Larsson at ir@ripassoenergy.com. For additional information about the company, please visit www.ripassoenergy.com. You can also sign up for the company’s newsletter on the website.
Press material is located at the webpage of Ripasso Energy as well, under the tab "Media”.
Ripasso Energy is required to disclose this information in accordance with the EU Market Abuse Regulation. The information was submitted for publication at the initiative of the above contact person on 28 September 2017 at 07.00 CET.