Swedish Stirling in final negotiations regarding new pilot facility agreement
Swedish Stirling AB (“Swedish Stirling”) is in final negotiations with a major South African ferrochrome producer. The agreement, which is agreed in all principal matter and anticipated to be entered into within the next few days, concerns the installation of a pilot facility with one PWR BLOK at a smelter in South Africa. Under the agreement, the facility is intended to be commissioned during Q2 2020.
The Swedish clean tech company Swedish Stirling is in the final stage of negotiations with one of South Africa’s leading ferrochrome producers, regarding an installation of a pilot energy conversion facility consisting of one PWR BLOK 400-F unit. The agreement is agreed in all principal matters and anticipated to be entered into within the next few days. Under the agreement, the facility is intended to be operational by Q2 2020 at the latest. Swedish Stirling will own and operate the facility, while the ferrochrome producer will provide residual gas from the smelter as well as purchase all the electricity that the facility generates at a set price. The agreement will run 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.
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
This information is information that Swedish Stirling AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:45 CET on December 12, 2019.