Agreement on pilot facility at Samancor Chrome TC Smelter signed
Swedish Stirling AB (“Swedish Stirling”) has entered into an agreement with the South African company Samancor Chrome’s subsidiary TC Smelter Proprietary Limited (“Samancor Chrome”). The agreement, which Swedish Stirling informed on December 12, concerns the installation of a pilot facility with one PWR BLOK unit at the TC Smelter facility in South Africa. The facility is intended to be commissioned during Q2 2020.
The Swedish clean tech company Swedish Stirling will, according to the agreement signed today, install a pilot energy conversion facility consisting of one PWR BLOK 400-F unit at the South African ferrochrome producer Samancor Chrome's TC Smelter production facility. Under the agreement, the facility will be operational by Q2 2020 at the latest. Swedish Stirling will own and operate the facility, while Samancor Chrome will provide residual gas from TC Smelter as well as purchase all the electricity that the facility generates at a set price. The agreement runs for three years from the date the facility is operational. The agreement will provide Swedish Stirling with revenue running to just under MSEK 2/year (KEUR 180/year), i.e. MSEK 6 (KEUR 540) over the duration of the agreement.
The agreement was preceded by an inquiry submitted by Samancor Chrome to Swedish Stirling earlier this year related to the startup of an energy conversion facility at TC Smelter. With its five major production facilities in South Africa, Samancor Chrome is one of the country's two top ferrochrome producers.
“This marks our second PWR BLOK reference facility installed in South Africa in quick succession, possible thanks to the flexibility in the renegotiated agreement with Afarak Mogale, plus the opportunity to show Samancor Chrome the full potential of the technology in a live setting. A future goal, of course, is to install full-scale facilities at all of Samancor's South African production facilities,” says Gunnar Larsson, CEO of Swedish Stirling.
Swedish Stirling has previously signed an agreement and declaration of intent with South African ferrochrome producers Afarak Mogale and Glencore for two facilities comprising 7 and 25 PWR BLOK units, respectively. In both cases, the agreements relate to energy conversion services, where Swedish Stirling’s PWR BLOK units convert the ferrochrome companies' residual gases into electricity that the companies then buy. Swedish Stirling's long-term strategy and expressed future ambition is to manufacture and sell the PWR BLOK. The company therefore recently announced its intention to form a financing/leasing company in South Africa in order to also be able to offer financing solutions for PWR BLOK to customers who desire this.
For further information please contact:
Sven Ljungberg, CCO, Swedish Stirling AB, +46 (0)31 385 88 30 ir@swedishstirling.com.
About Swedish Stirling
Swedish Stirling AB is a Swedish clean tech company founded in 2008 with a mission to further refine the incomparable ability of Stirling technology to convert thermal energy to electricity. The company’s latest product – the PWR BLOK 400-F – is a unique proprietary solution for recovering energy from industrial residual and flare gases and convert them to 100 % carbon-neutral electricity with high efficiency. The PWR BLOK is – according to independent certification – the cheapest way of producing electricity that exist today and gives greater CO2 savings per invested Euro than any other type of energy source. The company’s shares are listed in Sweden on the NGM Nordic MTF. Read more at www.swedishstirling.com