HydroDec Group plc Carbon Credit Project Approval (2446J)
08 September 2016 - 4:00PM
UK Regulatory
TIDMHYR
RNS Number : 2446J
HydroDec Group plc
08 September 2016
08 September 2016
Hydrodec Group plc
("Hydrodec" or the "Company")
Carbon Credit Project Approval
The Company is pleased to report that the American Carbon
Registry ("ACR") has approved Hydrodec's patented technology as a
carbon offset project in the voluntary carbon offset market,
creating an incremental revenue stream for the Company and
establishing Hydrodec (as far as the Board is aware) as the only
oil re-refining business in the world to receive carbon credits for
its output.
This is the final stage in a process that began prior to the
recommissioning of the Canton plant and the approval allows the
Company to generate, and monetise, carbon credits. Hydrodec of
North America ("HoNA") is now generating offsets through the
re-refining of used transformer oil, which would otherwise
ordinarily be incinerated or disposed of in an unsustainable
manner. The ACR has recognised 165,000 credits for HoNA's previous
production between 2009 and 2014. The Company anticipates that it
will generate 50,000 to 60,000 tons of carbon offset annually going
forward. Whilst the historical credits may only generate nominal
sums through trading, the ongoing generation of such credits could
realise up to US$5 per ton.*
Commenting on the approval, Chris Ellis, Chief Executive Officer
of Hydrodec said: "ACR approval means that Hydrodec now produces
the only oil globally which generates a carbon credit. It is a
further demonstration of the world leading nature of our technology
and product and reinforces the sustainability element of it to the
primary users of transformer oil. Although the initial direct
financial contribution of trading the credits may be modest,
strategically I expect that over time this will enable Hydrodec to
further develop commercial relationships with key transformer
manufacturers and utilities in our target markets."
Colin Moynihan, Chairman of Hydrodec added: "The last nine
months have seen the continued turnaround and transformation of
Hydrodec. Today marks a further important milestone in the
Company's progress. Carbon credit approval seals Hydrodec's
objective to establish a key role as a clean tech company with
genuine market leadership; the first proven 'green oil' technology
in the world with the capacity to treat and re-refine used and
contaminated oil into high quality, renewable transformer oil."
*Source: Carbonomics
For further information, please contact:
020 3300
Hydrodec Group plc 1643
Chris Ellis, Chief Executive
Officer
Canaccord Genuity
(Nominated Adviser and 020 7523
Broker) 8000
Henry Fitzgerald-O'Connor
Richard Andrews
Vigo Communications 020 7830
(PR adviser to Hydrodec) 9700
Patrick d'Ancona
Chris McMahon
Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil
re-refining and chemical process initially targeted at the
multi-billion US$ market for transformer oil used by the world's
electricity industry. MarketsandMarkets forecasts that the global
transformer oil market is expected to grow from US$1.98 billion in
2015 to US$2.79 billion by 2020 at a CAGR of 7.14%. Spent oil is
currently processed at two commercial plants with distinct
competitive advantage delivered through very high recoveries (near
100%), producing 'as new' high quality oils at competitive cost and
without environmentally harmful emissions. The process also
completely eliminates PCBs, a toxic additive banned under
international regulations. Hydrodec's plants are located at Canton,
Ohio, US and Bomen, New South Wales, Australia.
Hydrodec's shares are listed on the AIM Market of the London
Stock Exchange. For further information, please visit
www.hydrodec.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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