Swedish Stirling renegotiates agreement with Afarak Mogale
Swedish Stirling has renegotiated the agreement with South African Afarak Mogale (Pty) Ltd. The new agreement implies that Afarak Mogale will buy electricity produced by the PWR BLOK instead of owning the equipment itself.
Swedish cleantech company Swedish Stirling has renegotiated the agreement with the South African ferrochrome producer Afarak Mogale. The previous agreement was concluded between the companies in December 2017 and comprised of a purchase of seven PWR BLOK with delivery in 2019. The first unit was shipped at year-end 2018/2019
The new agreement between the parties, approved by the Board of Directors of Swedish Stirling today, stipulates that Afarak Mogale will buy the electricity produced by the PWR BLOK instead of them owning the equipment itself. The agreement for converting residual gas to electricity applies for seven PWR BLOK, and will come into force today and extend over eight years. According to the new agreement, the annual revenue for Swedish Stirling is estimated to be Euro 800,000 per year at full capacity and reduce CO2 emissions by 24,500 tonnes / year. The agreement gives Swedish Stirling the opportunity to choose the time of delivery for each PWR BLOK until December 31, 2020. The Flexibility makes it possible for the Company to free delivery capacity to other customers and reduce production costs.
- We have found a business model together with Afarak Mogale that works better for both parties, very similar to the model we are currently negotiating with a significantly larger customer. The customer receives directly a positive cash flow and we maintain full control of the product and the CO2 savings it provides. It also gives us a greater degree of freedom for delivery and manufacturing and therefore the opportunity of greater cost savings, says Gunnar Larsson, CEO of Swedish Stirling.
For further information please contact:
Sven Ljungberg, CCO, Swedish Stirling AB, ir@swedishstirling.com.
About Swedish Stirling
Swedish Stirling 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 offers a variety of solutions enabling power generation at record-low prices compared to other climate-friendly and sustainable alternatives. Swedish Stirling’s Stirling engine can handle a wide range of fuels. The company's latest product, the PWR BLOK 400-F, converts industrial residual and flare gases into electrical energy at a high rate of efficiency. The company’s shares are listed in Sweden (on the NGM Nordic MTF),and can also be traded on the Börse Stuttgart in Germany. Read more at www.swedishstirling.com
Swedish Stirling is required to disclose this information in accordance with the EU Market Abuse Regulation. The information was provided for publication at the initiative of the above contact person on May 24, 2019 at 14:30 CET.