Opcon’s partner in Australia announces signing of Memorandums of Understanding
Enerji Ltd. (ERJ:ASX) of Australia, the customer, partner and part-owned subsidiary of Opcon AB, the energy and environmental technology Group, has announced in the past few days that it has signed memorandums of understanding (MoU) with two potential customers concerning assessment of the viability of installing Opcon Powerbox at the customers’ sites.
Enerji has signed one of MoUs with Energy Developments Ltd. (EDL), a multinational company and Australia’s largest independent remote energy business in the 1 to 100 MW field. EDL operates power plants at 32 remote sites in Australia.
The MoU is described by Enerji as a major opportunity. Together, Enerji and EDL will assess the viability of Waste Heat Recovery installations featuring Opcon Powerbox at existing sites nominated by EDL as well as selected new sites for which EDL is submitting tenders or proposals. The aim is to negotiate supply agreements for sites where installations would be commercially viable. Enerji’s preliminary estimate indicates the potential for in excess of 10 Opcon Powerboxes over the next 2-3 years.
Enerji has previously ordered six Opcon Powerboxes from Opcon, of which the first was delivered for installation at Horizon Power’s Carnarvon power station. Enerji has also announced that it considers the MoU with EDL together with other sales opportunities it is working on will have the potential to utilise the remaining five units it has ordered. No new orders have been placed with Opcon.
Enerji, which will sell the electricity produced using Opcon Powerbox installed at customer sites, has also announced that the company expects to be operationally cash flow positive when the fourth Opcon Powerbox is installed and commissioned.
Enerji has also signed an MoU with Poseidon Nickel Ltd. A feasibility study will be carried out at Poseidon’s Windarra mine in Northern Goldfields, Western Australia. Enerjj’s CEO, Greg Pennefather, describes this as a schoolbook application for Enerji and its Waste Heat Recovery solutions featuring Opcon Powerbox. Mines such as Windarra are exposed to expensive electricity generation costs using diesel powered plants. Today, the cost of electricity generation using a diesel generator in remote parts of Australia where there is no electricity grid can be as high as SEK 2.40 (EUR 0.27) per kWh.
“It is very pleasing that Enerji continues to make progress. This shows that the Australian market has significant potential for Opcon Powerbox and that the increased energy efficiency and environmental benefits offered by our technology are generating interest,” says Rolf Hasselström, President and CEO of Opcon AB.
For further information, see press information published by Enerji at www.enerji.com.au
http://enerji.com.au/images/pdfs/ASX/asx%20announcement%20mou%20with%20edl%20final.pdf
http://enerji.com.au/images/pdfs/ASX/enerji%20signs%20mou%20with%20poseidon.pdf
A part of Opcon’s focus on Waste into Value, Opcon Powerbox is Opcon’s proprietary product for production of carbon-free electricity using primarily waste and surplus heat starting at temperatures of 55° C. Opcon Powerbox can be installed at plants in the process industry and at power plants and on large diesel engines used on land or sea. Opcon Powerbox can produce up to 6,000 MWh per year.
For further information, please contact
Niklas Johansson, vice president, Investor Relations, Opcon AB, tel. +46 8-466 45 00,+46-70-592 54 53
Opcon AB, Box 15085, 104 65 Stockholm, Sweden
Tel. +46 8-466 45 00, fax+46 8-716 76 61
e-mail: info@Opcon.se
www.Opcon.se
The Opcon Group
Opcon is an energy and environmental technology Group that develops, produces and markets systems and products for eco-friendly, efficient and resource-effective use of energy.
Opcon has activities in Sweden, China, Germany and the UK. There are around 400 employees. The company’s shares are listed on Nasdaq OMX Stockholm.
The Group comprises two business areas:
Renewable Energy focuses on the following areas: electricity generation based on waste heat, bioenergy-powered heating and CHP plants, pellets plants, drying of biomass, handling systems for biomass, sludge and natural gas, industrial cooling, flue gas condensation, treatment of flue gases and air systems for fuel cells.
Engine Efficiency focuses on energy-efficient solenoid technology and ignition systems for combustion engines including ethanol, natural gas and biogas engines.
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