Planet Soar signs framework agreement with Absolicon to acquire Production line in France
Planet Soar has signed a framework agreement with Absolicon for the acquisition of a production line for the T160 Solar collector in France. Planet Soar is a renewable energy company based in France, that supports several actors in the deployment of renewable energy project infrastructure. The total sales value covered by the agreement is estimated at € 4-5 million plus a monthly license fee of 4% and sales of components. The framework agreement prescribes the principles for the separate agreements to be drawn up.
Content of the framework agreement
The framework agreement describes the separate agreements to be drawn up in the process. Absolicon's proceeds from the sale can be grouped into three groups: acquisition of the line, license revenue and revenue from material sales.
1. Sale of the production line
The production line is of the same model as Absolicon has in Sweden and which the company has already delivered to Sichuan Province. The line with two six-axis robots has the capacity to produce 50 MW solar collectors (100,000 m2) per year. Together with the hardware, Absolicon provides consulting support for marketing and technical support, development and technical training.
The total value of hardware and activities covered by the agreement is estimated at € 4-5 million.
2. License to manufacture T160
For the right to manufacture T160 under Absolicon's intellectual property protection, take part in future product development and use Absolicon's trademark, a monthly license fee of approximately 4% applies to the sales value.
The production line in full production produces on a shift 50 MW solar collector (100 000 m2) per year with sales value € 20-25 million which with 4% license fee would mean about € 800 000 per year in license revenue. Absolicon's estimate, however, is that it takes time for Planet Soar to develop the solar thermal market for industries in the region so that these volumes can be achieved.
3. Material supply
Through the agreement, Absolicon ensures access to patented components and high-quality inputs partly manufactured in France or locally at the installation site.
At full production, the production line needs to buy materials for € 10-15 million per year where 40% - 50% of purchases may go through Absolicon and 50% - 60% from local subcontractors. The outcome for Absolicon depends to some extent on the result of Absolicon's ongoing material investment.
The framework agreement sets out overarching principles
The framework agreement prescribes the general principles for the separate agreements to be drawn up, and the steps to be taken before a binding agreement for the acquisition of the production line can be signed. The estimated value of sales is subject to change as well as the definitive design of the production capacity of the production line. Absolicon estimates today that the sales value of the agreement is at the lower end of the range of € 4-5 million.
If Planet Soar fails to meet its commitments at every stage, they lose the right to complete the acquisition and then have the opportunity to recover part of the purchase price, but never for Absolicon's incurred costs.
France has a wide industrial sector which consumes around 60 % of total energy as heat, emitting 40 Mtons of CO2 every year*. By replacing only 10 % of fossil fuels used in the industries with Absolicon solar collectors to supply industrial heat demand, the estimate market potential for the T160 solar collector can be up to 8 million sqm (4GW).
Planet Soar is a renewable energy company based in France, that supports several actors in the deployment of renewable energy project infrastructure. Planet Soar provide solution such as financing, development, supply chain and project management. Together with its partners, Planet Soar deploy or supply the most innovative products and solutions to their respected markets.
Absolicon and Planet Soar have signed a framework agreement for the acquisition of a production line for establishment in France to provide the region with advanced solar collectors.
The collaboration is built on the qualified network and experience of Planet Soar as well as their commitment in helping those who are taking action for the future of the planet.
The largest segments of Absolicon's solar collector technology in the region are:
- Food and Beverage
- District heating
- Pulp and Paper
Planet Soar will now undergo an online training and start marketing deployment.
Discussions have just begun on the first pilot installations of the T160 in France. More detailed contract writing is now taking place. Payment is made step by step in the same way as in the previous sale of the production line to the province of Sichuan.
This disclosure contains information that Absolicon is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 11-01-2021 12:35 CET.
Joakim Byström vd Absolicon Solar Collector AB
Phone: +46 611-55 70 00
Absolicon is a listed Swedish solar energy company, specializing in concentrated solar heating. The solar collector T160 operates up to 160°C and has the highest optical efficiency ever measured for a commercially available small parabolic trough. After achieving groundbreaking performance, Absolicon has built two robotized production lines, one in Sweden and one in China that can produce 50 MWp(th) annually, one 5.5 m2 solar collector every six minutes. The company combines solar energy research with sales of solar collector fields to industries that need heat and steam and complete robotic production lines for T160.