Opcon: signs development order in China for high pressure compressor for environmentally friendly heat pumps
Energy and environmental technology Group Opcon’s Center of Excellence for compressor technology, Svenska Rotor Maskiner (SRM), has signed yet another development agreement with the Chinese technology company that SRM began working with in 2011.
The agreement, which involves a major expansion of the earlier collaboration, covers development of a modern high-pressure compressor based on SRM’s innovative and well-tested compressor technology. The compressor is optimized for natural cooling agents and high pressures. It is one in a series of high-temperature, high-pressure compressors optimized for natural cooling agents and use in industrial heat pump applications. The value of the order for the development of this size of compressor is SEK 9 million over twelve months. On top of this there will be licence revenues over ten years and the option for extension, which is linked to the customer’s own future sales and which could represent considerable amounts.
With this customer alone, SRM has signed development and licensing agreements over the past two years where the agreement-related revenues amount to around SEK 90 million, of which SEK 75 million covers development. Revenues could be significantly higher over time depending on the customer’s sales and the assessment is that royalties during 2014-2024 from this customer will amount to over SEK 100 million.
“We have an excellent collaboration where this has developed into a very valuable relationship for us on the strategically important Chinese market. To our Chinese partner this means that they are now getting access to best there is in compressor technology. We are integrating the past 30 years of compressor development for future production in China at the same time as they are getting the very latest of SRM development. It is a little like a Greatest Hits record with a few new songs in our field. We are also adapting compressors so that they can be optimized for energy-saving partial load operation and natural cooling agents. This means that they will be energy efficient, environmentally friendly and cheaper which are important elements in what our customer wants to offer the market. Energy efficiency and environment are key issues on the Chinese agenda,” says Rolf Hasselström, President and CEO of Opcon AB.
Svenska Rotor Maskiner AB (SRM) is a part of Opcon's Renewable Energy business area. In 2008, SRM celebrated 100 years of industrialization and development of technology for effective and resource-efficient energy usage. SRM was founded in 1908 as AB Ljungströms Ångturbin, in order to develop the double rotation steam turbine which was invented by Birger Ljungström and that was later sold to what today is the turbine manufacturer, Siemens Industrial Turbomachinery AB. For over 100 years, SRM has developed a number of products for the world market and since the 1930s has developed compressor technologies, with major licensees such as Howden, Kobe Steel, Atlas Copco, Hitachi, IR, Carrier, York, Trane, Kobelco, among others. This technological basis today forms an important part of the Renewable Energy business area's efforts in Waste Heat Recovery and production of electricity from waste heat, including Opcon Powerbox.
For further information, please contact
Niklas Johansson, vice president, Investor Relations, Opcon AB, tel. +46 8-466 45 00,+46-70-592 54 53
The Opcon Group
Opcon is an energy and environmental technology Group that develops, produces and markets systems and products for eco-friendly, efficient and resource-effective use of energy.
Opcon has activities in Sweden, Germany and the UK. There are around 150 employees. The company’s shares are listed on Nasdaq OMX Stockholm. The Group comprises one business area:
Renewable Energy focuses on the following areas: electricity generation based on waste heat, bioenergy-powered heating and CHP plants, pellets plants, handling systems for biomass, sludge and natural gas, industrial cooling, flue gas condensation, treatment of flue gases and air systems for fuel cells.