28 Dec 2018 07:00
28 December 2018
Hydrodec Group plc
("Hydrodec", the "Company" or the "Group")
Hydrodec Group plc takes operational control of North American operations
Hydrodec Group plc (AIM:HYR), the cleantech industrial oil re-refining group, announces that further to its recent strategic review and as part of the realignment of its interests in the United States, the Company has reached agreement with its long term partners, G&S Oil Recycling ("G&S"), to increase Hydrodec's interest in Hydrodec of North America ("HoNA") from 58% to 85%; to restructure the governance and representation on the HoNA Board; to increase plant and commercial efficiency at the Canton, Ohio facility; and to provide Hydrodec with overall operational control. Hydrodec will at the same time inject $3.8m of working capital into the business.
Hydrodec is also now in the process of agreeing a new feedstock supply agreement with G&S to deliver a fully aligned platform for growth of the Company's US activities.
Lord Moynihan, Executive Chairman, commented: "I am pleased to close the year with more material progress as we set Hydrodec on an exciting course for the years to come. 2018 has seen the start of the delivery of a major turnaround for the Company with a comprehensive strategic review; a successful capital raise with strong institutional support; and today's announcement of a substantial increase in our ownership of Hydrodec's U.S. activities, increasing our strategic, commercial and operational flexibility in the region. These are the necessary building blocks for Hydrodec to become the leading green re-refiner of transformer oil in the world. With the generation of carbon credits that our output provides, we are now in a position to deliver a strong platform for both growth and profitability, and we look forward to reporting on our further progress in 2019."
Hydrodec Group plc | hydrodec@vigocomms.com | |
Lord Moynihan, Executive Chairman David Dinwoodie, Chief Executive Officer | ||
Arden Partners plc (Nominated Adviser and Broker) | 0207 614 5900 | |
Steve Douglas / Ciaran Walsh / Alex Penney - Corporate Finance Paul Brotherhood - Equity Sales | ||
Vigo Communications (PR adviser to Hydrodec) | 020 7390 0230 | |
Patrick d'Ancona Chris McMahon |
Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil re-refining and chemical process initially targeted at the multi-billion US$ 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% from 2015 to 2020. Spent oil is currently processed at two commercial plants with distinct competitive advantage delivered through very high recoveries (>99%), producing transformer oil that meets or substantially exceeds applicable international standards at competitive cost and without environmentally harmful emissions. The process also eliminates PCBs, a toxic additive banned under international regulations.
In 2016 Hydrodec received carbon credit approval from the American Carbon Registry ("ACR"), enabling its product to be sold with a carbon offset and creating an incremental revenue stream. The Group is now generating carbon offsets through the re-refining of used transformer oil, which would otherwise ordinarily be incinerated or disposed of in an unsustainable manner. This is a highly distinctive feature for the Group, confirming (as far as the Board is aware) Hydrodec as the only oil re-refining business in the world to receive carbon credits for its output. This is a significant endorsement of the Company's proprietary technology and standing as a leader in its field.
Hydrodec's current 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.