LONDON (Alliance News) - Nova Resources Ltd Thursday said Enerstry Co Ltd has been granted the exclusive distributorship of SM Boilers by Ssangma Machine Co Ltd.
The energy investor said the exclusive access to reliable and cost effective boilers should give Enerstry a competitive advantage as it looks to expand its business.
Under the deal, Ssangma will only sell its SM Boilers to Enerstry outside of South Korea.
SM Boilers, which use wood pellets or wood chips as a fuel source, can be used in the types of renewable energy plants which have been recently built and managed by Enerstry.
Nova has a 23.72% holding in Enerstry Group, which has a 93.33% holding in Enersty Co Ltd.
Enerstry announced earlier this week that it had secured an offtake contract with Hansung Industries Co Ltd, which is to purchase steam from a renewable energy plant which is to be built, owned and managed by Enerstry Co Ltd.
The plant will use wood pellets as fuel to create heat energy and steam at the Korean site, which the company expects to complete, test and commission by August 31.
Nova Resources shares were up 8.3% to 1.95 pence, putting them in the top ten AIM movers Thursday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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