Contract win

RNS Number : 5865S

Porvair PLC

23 November 2011

 



For immediate release                                                                              23 November 2011

Porvair PLC

Significant Contract Win

Porvair filtration technology selected for Posco Gwangyang gasification project

Porvair plc ("Porvair" or "the Group"), the specialist filtration and environmental technology group, today announces that its Microfiltration division has signed an agreement with POSCO E&C to supply char filtration equipment to POSCO's Gwangyang, South Korean coal-to-substitute natural gas (SNG) project.  The project, with POSCO E&C, a division of POSCO, one of the world's largest steel makers, will generate substantial revenues over the next three years for Porvair. 

The Gwangyang facility, once built, will produce 500,000 metric tons of pipeline quality SNG from the gasification of approximately 1.8 million tons of coal annually. The plant will use Porvair's design for its char filtration package to remove fly ash during the gasification process.  Under the agreement, Porvair will supply all designs as well as filters and ancillary equipment.  Porvair will become POSCO E&C's preferred supplier for future SNG facilities.

Gasification is a fast growing industrial process, with 25% capacity growth between 2009 and 2011 (source: the Gasification Technologies Council 2011), almost all of which is in Asia and the Americas.  Porvair has unmatched experience in the design and manufacture of hot gas (above 300° C) filtration systems for gasification processes, such as the process utilised at Gwangyang, and has considerable proven run-time over a period of more than ten years.

Ben Stocks, CEO of Porvair plc commented: "This is a significant contract for Porvair, in a market that we have been developing steadily for several years. Depending on final configuration it will generate revenues of $10-15 million. We will start manufacturing early in 2012, with first deliveries due at the end of the year and subsequent deliveries stretching out through 2013.  Order books across the business are currently healthy, and this work with POSCO will go some way to underpinning our order position over the next two years."

For further information, please contact:

Porvair plc		01553 765 500
Ben Stocks, CEO Chris Tyler, Group Finance Director
Peel Hunt		020 7418 8900
Dan Harris
Buchanan
Charles Ryland, Catherine Breen		020 7466 5000

 

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