Sales Agency Agreement

RNS Number : 7832L

Sabien Technology Group PLC

15 September 2021

 

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.  The directors take responsibility for this announcement.

15 September 2021

Sabien Technology Group plc

("Sabien" or the "Company")

Sales Agency Agreement

The Board of Sabien Technology Group plc (AIM:SNT), a Company focused on building a portfolio of solutions in the heating, cooling, and transportation sectors, announces today an agreement with City Oil Field Incorporated of South Korea ("COF").

The agreement provides that Sabien acts as an exclusive sales agent for COF in the UK, with non-exclusive rights in other territories, for an initial period of 1 year. A longer-term relationship is anticipated, and future sales targets have been agreed in outline. COF's proprietary technology and techniques, collectively a Resource Gathering Operation (RGO), focus on the production of light and ultra-pure fuel products from low temperature processing of end-of-life plastics.

This process involves the catalytic degradation of waste plastics and vinyl materials via a wave energy application utilising specifically designed ceramic ball catalysts. This enables the required degradation to occur at low temperatures (200°C to 270°C), producing a heavy oil. A further refinement process, which also makes use of the ceramic ball technology, leads to production of a highly refined, ultra-pure fuel product (i.e. a fuel from waste).

This fuel oil has multiple uses and applications across the transportation, construction, and chemical processing industries. For example, in South Korea the fuel product has been used to replace off-the-shelf Diesel in industrial machinery. Unlike commercial off-the-shelf Diesel, which is also highly polluting, the City Oil Field fuel-from-waste has a flow point of less than -40 ℃ , which means that waxing at low temperatures is avoided without further processing such as use of additives. Furthermore, its use of wave energy allows the production of fuel oil without the consequent production of waste products associated with other methods.

Plastics pollution is a world-wide environmental problem adversely impacting the health of all living organisms. Plastics are a net consumer of primary extracted fossil hydrocarbons and their disposal by incineration leads to emissions, including greenhouse gases, and waste. By repurposing used plastics without incineration into useable fuel oils through the COF process, we will (1) reduce the global need for primary extraction of fossil oils, and reduce our dependency on primary fuels; (2) reduce the disposal of plastics into the natural environment by offering a valuable end-of-life processing solution; and (3) reduce the dispersal of harmful waste products into the atmosphere.

It is the Company's expectation that this agreement represents a precursor to a greater involvement in the waste-to-energy sector, particularly in the UK.  Sabien will look to work with partners to develop recycling facilities in the UK and the US, utilising COF's technology, which facilities would work closely with both the waste industry and customers for industrial fuel oil. The agreement is consistent with and supportive of the UK Government's plans to reduce plastic waste exports for recycling and the use of landfill in the UK. 

The agreement represents a financially efficient means of Sabien accessing COF's technology and developing its use across the UK and the US. The terms allow Sabien to benefit financially from the development of facilities through commission on sales of COF's technology to third parties and to generate revenue from expanding its own network and understanding of the fast-growing UK recycling industry. It is anticipated that, subject to technology verification by Cambridge University, Sabien will participate in one or more commercial partnerships to fund, construct and operate COF powered recycling plants.

Commenting on the agreement, Richard Parris, Executive Chairman of Sabien, stated:

"The imperative to reduce both UK waste exports and the use of domestic landfill has grown over the last decade. It is encouraging to note that the means of achieving these aims are now developing at equivalent pace. The Board of Sabien is pleased to partner with City Oil Field in bringing its innovative process to the UK and US. Sabien believes that the economics of the waste management and recycling industries in the UK support this initiative and that the growth prospects are considerable. Our partnership is another example of Sabien's continuing transformation into a solutions provider for the Green Economy."

Dr Athan Fox, Chief Scientific Officer at Sabien, also commented:

"City Oil Field's technology offers a unique and timely solution for the management of end-of-life plastics. What makes this technology unique is that it is capable of processing multiple plastics, including high-density and low-density polyethylene, vinyl-based materials, polystyrene and foams, and metallised and ceramic films, without having to separate these at the front end. Importantly, it is also not required to shred, cut, wash or de-label the plastics. The catalytic process allows City Oil Field to produce consistent end-products even though the waste feedstock is variable. Because the plastics are processed at low temperatures, there are no liquid or sludge wastes at the end of the process, and it is possible to extract metallic components, such as aluminium and tin, post-processing for recycling. The tolerance to impurities makes the City Oil Field process suitable for waste remediation, which means we can also use waste plastics sourced directly from the landfills without having to clean or to separate the plastic from other materials. I have had the pleasure of meeting the team behind City Oil Field's technology as a delegate of the UK Government's "Global Business Innovation Programme" to South Korea, in November 2018, and later on as a delegate of the European Commission's "EU Gateway" to South Korea, in September 2019".

Further Information:

Sabien Technology Group plc Richard Parris, Executive Chairman	[phone]
Allenby Capital Limited (Nominated Adviser) John Depasquale / Nick Harriss	[phone]
Peterhouse Capital Limited (Broker) Duncan Vasey / Lucy Williams	[phone]

The person who arranged for the release of this announcement on behalf of the Company was Richard Parris, Executive Chairman.

A copy of this announcement will be available from the Company's website at www.sabien-tech.com

 

END

 

 

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