Supply of UK's First Regenerative Green Oil System

RNS Number : 9829E

Sabien Technology Group PLC

02 November 2022

 

2 November 2022

Sabien Technology Group plc

("Sabien", the "Company" or the "Group")

Contract Update - Supply Contracts Signed for First Regenerative Green Oil system in the UK

Sabien Technology Group plc (AIM:SNT), the company focused on a green aggregation strategy, provides an update on contract status with City Oil Field, Inc., of South Korea ("COF"), a previously announced partner of Sabien that specialises in solutions for recycling waste plastic into fuel products and naphtha, and b.grn Group Ltd ("b.grn"), a previously announced special purpose vehicle ("SPV") 33% owned by Sabien.

On 26 October 2022, b.grn and COF signed a binding contract for the supply of the first 24T COF Regenerated Green Oil ("RGO") system into the UK (the "Agreement"), with Sabien as the sales agent under the Agreement (as set out in the Company's announcement of 22 December 2021).  Under the Agreement, b.grn is responsible for securing, funding and developing a suitable site and for procuring all necessary equipment from COF, and COF are bound to supply the contracted system at the price set out in the Agreement under engineering, procurement, and construction ("EPC") contract terms. b.grn has today paid a fee to COF to formalise this contract.  The Agreement is conditional on b.grn raising the required funding and entering into an EPC agreement within one year (unless mutually agreed to extend).

In addition, Sabien notes that b.grn has (1) announced and commenced a fund-raising round to capitalise the SPV, (2) issued a formal expression of interest in a site in the UK Midlands, (3) commissioned an architect to design necessary buildings on the target site and (4) entered into MOU discussions to install RGO facilities in multiple countries in addition to the UK.  Sabien has no liability under the Agreement, nor has any requirement to provide funding to b.grn.  There is no certainty that b.grn will be able to raise the required funds.

The Board of Sabien believes it is probable that the Agreement will be completed, however there can be no guarantee. Subject to b.grn being able to secure sufficient finance and agree an EPC contract with COF, Sabien will earn a commission of circa US$1,000,000 on successful delivery and installation of this first installation and each subsequent installation under its sales agency agreement with COF. It is expected this will occur within the next 18 months. As a shareholder in b.grn, Sabien will also profit share in b.grn earnings from future operations.

Richard Parris, Chairman of Sabien, commented:

"The signing of the Agreement followed a successful visit by executives from COF and the Korean Environmental Corporation to the UK on 24-26 October. After meetings in the Palace of Westminster, a dedicated Trade Summit, visits with Cambridge and Birmingham Universities, engagements with city councils and the inspection of a target site, the parties to the contract agreed that the time was right to move from a discussion phase to the start of business execution. As interested parties, I will keep Sabien investors updated on b.grn's production roll-out plans. In the meantime, a recording of the trade summit can be viewed at: https://youtu.be/yx106F79HMk ."

For Further Information: Sabien Technology Group plc Richard Parris, Executive Chairman Scott Fulton, Investor Relations	[phone] [e-mail]
Allenby Capital Limited (Nominated Adviser) John Depasquale / Nick Harriss / Vivek Bhardwaj	[phone]
Peterhouse Capital Limited (Broker) Duncan Vasey / Lucy Williams	[phone]

 

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