Swedish Stirling signs agreement with Glencore Merafe Venture

Swedish Stirling AB (“Swedish Stirling”) and Glencore Operations South Africa Proprietary Limited (“Glencore”), acting on behalf of the Glencore Merafe Venture, have  signed an energy conversion service agreement for an installation of 25 PWR BLOK 400-Fs (10MW) at the Glencore Merafe Lion ferrochrome smelter.

The PWR BLOK 400-F is a product developed by Swedish Stirling which enables the conversion of industrial residual and flare gases into 100% carbon-neutral electricity.

In August 2020,  clean-tech company, Swedish Stirling entered into a letter of intent  with Glencore regarding discussions on potential energy conversion services at the Lion smelter in South Africa comprising the possible installation of up to 88 PWR BLOK 400-Fs.

Today, the parties announce the signing of an energy conversion service agreement for the installation of 25 PWR BLOK 400-Fs (10MW) at the Lion smelter. The term of the agreement is 8 years from the date on which the last PWR BLOK achieves commercial operation, with an option for the Glencore Merafe Venture to extend the term by 7 years. The estimated present value for the initial term of the agreement for Swedish Stirling is 700 MZAR (49 MUSD).

The energy conversion service agreement is subject to certain conditions precedent including financial close. During the contract period, the installation is estimated to offset the carbon dioxide emissions from the Lion smelter by over 500,000 tonnes. The first PWR BLOK is expected to be delivered to Lion in 2022. The facility will be owned and operated through a special purpose vehicle, established and controlled by Swedish Stirling.

“The Lion smelter is one of the world's largest ferrochrome smelters. For Swedish Stirling, this development is recognition that the PWR BLOK is a key solution for energy recovery in the metallurgical industry, and is the starting point for a large commercial roll-out, said Gunnar Larsson, CEO of Swedish Stirling.”

“We are excited to implement this project which we hope will reduce both our production costs and carbon dioxide emissions. This project is part of Glencore’s ambition to achieve net-zero total emissions by 2050, said Japie Fullard, Head of Ferroalloys Industrial Assets at Glencore”

For further information please contact:

Sven Ljungberg, CCO, Swedish Stirling AB, +46 (0)31 385 88 30  ir@swedishstirling.com. 

About Swedish Stirling AB

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 recycling energy from industrial residual and flare gases and converting these into 100% carbon-neutral electricity at high efficiency. According to an independent certification, the PWR BLOK is the cheapest way to generate electricity that exists today, yielding greater CO₂ savings per krona invested than any other type of energy. Swedish Stirling AB is listed on Nasdaq First North Premier and FNCA Sweden AB is appointed Certified Adviser, +46(0)8-528 00 399, info@fnca.se.  Read more at www.swedishstirling.com

About Glencore

Glencore is one of the world’s largest global diversified natural resource companies and a major producer and marketer of more than 60 responsibly-sourced commodities that advance everyday life. The Group's operations comprise around 150 mining, metallurgical and oil production assets.

With a strong footprint in over 35 countries in both established and emerging regions for natural resources, Glencore's industrial activities are supported by a global network of more than 30 marketing offices. Glencore's customers are industrial consumers, such as those in the automotive, steel, power generation, battery manufacturing and oil sectors. We also provide financing, logistics and other services to producers and consumers of commodities. Glencore's companies employ around 135,000 people, including contractors.

Glencore is proud to be a member of the Voluntary Principles on Security and Human Rights and the International Council on Mining and Metals. We are an active participant in the Extractive Industries Transparency Initiative. Our ambition is to be a net zero total emissions company by 2050. www.glencore.com/southafrica

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 18:00 CET on 28 April 2021.