HYR.L Regulatory News (HYR)

1st June 2015

Hydrodec Group plc

("Hydrodec" or the "Company")

Canton commissioned, expected to start production this week

Hydrodec Group plc (AIM: HYR), the clean-tech industrial oil re-refining group, confirms that, following a commissioning process, the rebuilt and expanded plant in Canton, Ohio is now commissioned. Subject to final instrument tuning, the plant is now expected to commence production this week. Expansion 'trains' 1 and 2 have been the immediate focus and will be the first into full operation; the commissioning process has enabled mechanical completion and testing of the replacement 'trains' 3 to 6. These will be started sequentially once production from 'trains' 1 & 2 has been fully established. 

First sales of base oil are expected shortly after production starts, with transformer oil sales following after detailed testing and certification, three to four weeks later. Orders for the newly commissioned capacity at Canton are very encouraging both for base oil and transformer oil. Hydrodec of North America expects to broaden its sales to a variety of new customers as well as re-initiate supply to most of our core customer base within a few months of start-up. Hydrodec's transformer oil will be the first oil product in the market to generate a carbon credit which can be traded as a voluntary carbon offset in the US.

Commenting on this, Ian Smale, Chief Executive of Hydrodec said: "The commissioning of Canton is very important for Hydrodec; bringing the new plant online has progressed carefully to fully enable the additional operational and safety features designed into this upgrade and which we are confident will deliver at least 10% greater efficiency than the name plate capacity of the original equipment. Our new plant will be safer, easier to maintain and we are confident can produce 40 million litres per annum of the best quality transformer oil available in the US."

For further information please contact:

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. 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 Young, New South Wales, Australia. In 2013, Hydrodec acquired the business and assets of OSS Group, the UK's largest collector, consolidator and processor of used lubricant oil and seller of processed fuel oil, with a national network of oil storage and transfer stations. Used oil is converted into processed fuel oil at OSS's plant at Stourport and principally sold on to the UK quarry and power industry. In April 2015, Hydrodec further acquired the business and assets of Eco Oil, a leading UK waste oil collector and supplier of recycled industrial fuel oil into the power and road stone industries. It is also one of four significant providers of waste management services to the marine industry in the UK, specifically oily-water slops or marine pollutant (MARPOL). In line with our stated intention to develop a base oil re-refinery in the UK, we have an exclusive licence agreement with California-based Chemical Engineering Partners (CEP) to develop the CEP wiped-film evaporation and hydrogenation technology in the UK as well as the basic engineering for a 75 million litre per annum capacity base oil re-refinery.

Hydrodec's shares are listed on the AIM Market of the London Stock Exchange. For further information, please visit www.hydrodec.com.