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Pacific Green Tech. (PGTK)

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Tuesday 20 December, 2016

Pacific Green Tech.

Pacific Green - Agreement to Retrofit Scrubber

RNS Number : 3822S
Pacific Green Technologies Inc.
20 December 2016
 

Pacific Green - Agreement to Retrofit Scrubber

SAN JOSE, CA / ACCESSWIRE / December 20, 2016 / Pacific Green Technologies Marine Limited ("PGTM"), a subsidiary of Pacific Green Technologies Inc. (OTCQB: PGTK), announces it has closed a binding agreement with one of the UK's largest ship owners, Union Maritime Ltd (UML), for the sale of its ENVI-MarineTM Exhaust Gas Cleaning System. The scrubber will be fitted to UML's 13,000dwt chemical tanker MV "Westminster" in Q1 2017.

The System will be supplied to MV "Westminster" under an innovative financing agreement whereby UML will pay for the cost of the scrubber (US$1.95 million) through saving the vessel achieves by not having to switch to high-cost, low sulphur fuels when operating in Sulphur Emission Control Areas (SECAs). Under the terms of an energy management contract, MV "Westminster" will operate for a minimum of 140 days per year in a SECA until 1 January 2020. Fuel savings achieved by continuing to burn heavy fuel oil in these areas and cleaning the emissions by PGTM's scrubber technology are expected to be around US$2,500 a day. UML will pay the full cost savings to PGTM until PGTM has received the full cost of the scrubber (US$1.95 million).

The Agreement also covers UML's intent to purchase up to a further ten systems from PGTM within the next eighteen months.

Sulphur Emission Control Areas (SECA) are areas of the ocean where sulphur emissions are restricted to 0.1%. These areas currently include the Baltic Sea, North Sea, and North America, which includes most of the US and Canadian coastline and the US Caribbean. Vessels operating in these areas are required to switch to low sulphur fuel or use scrubber technology to clean their exhaust gases.

Commenting on the agreement, Neil Carmichael, Chief Executive of PGT and Chairman of Pacific Green Technologies Marine Ltd, said:

"Our scrubber technology has been designed with retrofit in mind. Our systems are flexible, compact, and effective, which makes them ideal for all vessel types, including smaller vessels such as MV Westminster. We are currently developing a suite of emissions control technologies suitable for all major classes of ships and focusing on both existing vessels and newbuilds. That said, our flexible design, utilizing our patented Turbo Head Technology, optimally positions us to take leadership of the retrofit market where space and ease of installation are key considerations."

He went on to say:

"We would like to thank UML's managing director, Laurent Cadji, and his team for their effort and hard work in finalizing this agreement. We look forward to a long and fruitful partnership with Union Maritime."

Laurent Cadji, managing director of UML said:

"Complying with international emission control regulations is not easy for an operator of smaller vessels where space onboard is tight. PGTM's solution is flexible and compact, which allows us to retrofit the technology without too much of a physical challenge. We are delighted with the solution and look forward to realizing the benefits over the coming period."

Recently, the IMO has ruled that the current sulphur cap of 3.5% in international waters must be reduced to 0.5% by 2020. This has significantly expanded the market potential for PGTM's marine technologies.

About Pacific Green Technologies, Inc.

Pacific Green Technologies Inc. is focused on addressing the world's need for cleaner and more sustainable energy. The company's strategy is to build through organic development and acquisition a portfolio of patented competitive cutting edge technologies designed to meet increasingly stringent environmental standards.

www.pacificgreentechnologies.com

About Union Maritime

Union Maritime Limited (UML) is one of the largest UK-based independent shipowner/operators with a fleet of 27 product/chemical tankers and two bulk carriers. Operating globally, but with a developed expertise and focus on West Africa, UML enjoys an established reputation for carrying cargoes safely and efficiently whilst delivering clear and honest information to its clients and stakeholders in complex trading environments.

The UML fleet continues to grow and, to date, has moved millions of tonnes of bulk commodities for global, blue-chip oil companies, refiners, and traders.

Established in 2006 from the union of two successful commodities and industrial businesses based in Nigeria, UML aspires to become the logistics partner of choice for the world's leading commodity traders.

www.unionmaritime.com

For further information contact:

Neil Carmichael, President and Director
Pacific Green Technologies
T: +1 (408) 538-3373

Issued by Navigate PR Ltd (London). Mike Elsom [email protected] +44 20 3326 8464 / +44 7968196077

Notice Regarding Forward-Looking Statements:

This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this news release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations, or intentions regarding the future. Such forward-looking statements include, among other things, that PGT's emission control system has significant potential to be a market leader in China.

Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, general economic conditions, and the continuation of the JV with POWERCHINA SPEM resulting in definitive agreements. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations, and intentions contained in this news release are reasonable, there can be no assurance that such beliefs, plans, expectations, or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.

SOURCE: Pacific Green Technologies Inc.

 


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