18 Aug 2016 07:00
18 August 2016
Hydrodec Group plc
("Hydrodec" or the "Company")
Long Term Utility Contract Awarded
The Company is pleased to report that its Australian operation has been awarded a 5 year contract for the supply of inhibited transformer and switchgear oil by Essential Energy, a major Australian utility. The contract includes the collection and re-refining of all generated PCB and non-PCB waste oils and is expected to generate over 1 million litres of new transformer oil sales over the life of the contract. The contract was awarded under a competitive tender process, with the Company successfully competing against a range of new oil suppliers. Under this contract, Hydrodec will become the sole supplier of new inhibited transformer and switchgear oil to Essential Energy. The Company expects to start supplying oil under the new contract from September 2016.
Commenting on this success, Chris Ellis, Chief Executive Officer of Hydrodec said "I am hugely encouraged by this contract award as it is a significant milestone in the evolution of the Company's activities. Although it will only make a modest contribution at the Group level, it is a very significant contract both locally and strategically. We are delighted that our re-refined transformer oil was successful in a competitive tender and exceeded the technical product acceptance criteria. It is further evidence of the quality of our product and provides the basis to develop similar relationships with other utilities in Australia and elsewhere."
For further information please contact:
Hydrodec Group plc |
| 020 3300 1643 |
Chris Ellis, Chief Executive Officer |
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Canaccord Genuity(Nominated Adviser and Broker) |
| 020 7523 8000 |
Guy Marks Henry Fitzgerald-O'Connor
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Vigo Communications(PR adviser to Hydrodec) |
| 020 7830 9700 |
Patrick d'Ancona Chris McMahon
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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.
The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain.