13 Dec 2012 07:00
13 December 2012
Hydrodec Group plc
("Hydrodec" or the "Company")
Industrial Oil R&D Programme
Hydrodec Group plc ("Hydrodec"), the cleantech industrial oil re-refining group (AIM: HYR), announces that it has achieved proof of concept in its industrial oil research programme by producing a high quality Group II base oil sample from a wide range of used industrial oils. This extension of Hydrodec's proven technology into paraffinic feedstock and products has the potential to create a material new market opportunity; it has also given the Company an insight into how the technology can be utilised to re-refine engine oils.
Ian Smale, Chief Executive of Hydrodec, commented:
"This is excellent news and a key milestone in the strategic development of our unique proven technology. The outcome is extremely encouraging as it opens the possibility of an industry-leading approach to general oil re-refining with high recovery rates, competitive operating costs, high quality products and the potential for carbon neutral oil.
We are now in discussions with industry participants in order to secure feedstock, develop a pilot plant and devise a product suitable for industrial users."
The global market for naphthenic transformer oil sales is estimated at approximately US$1.5 billion per annum; the market for industrial oil sales is approximately US$8 billion per annum and for engine oil sales is approximately US$20 billion per annum.
For further information please contact:
Hydrodec Group plc | 020 7907 9220 |
Ian Smale, CEO | |
Mike Preen, Head of Corporate and Legal Affairs | |
Numis Securities Limited (Nominated adviser/joint broker) | 020 7260 1000 |
Nominated Adviser: Hugh Jonathan Corporate Broker: David Poutney, Alex Ham | |
Cenkos Securities plc (Joint broker | 020 7397 8900 |
Corporate Finance: Adrian Hargrave Sales: Christian Hobart | |
Luther Pendragon (PR adviser to Hydrodec) | 020 7618 9100 |
Neil Thapar, Alexis Gore |
Notes to Editors:
Hydrodec's technology is a proven highly efficient oil re-refining and chemical process which is being initially targeted at the multi-billion US$ market for transformer oil used by the world's electricity industry. The Group takes spent oil, including polychlorinated biphenyl ("PCB") contaminated oil, as the primary feedstock, which is then processed at its two plants enabling 99 per cent or greater recovery of oil for reuse while also eliminating PCBs, a toxic additive banned under international regulations, without environmentally harmful emissions.
Hydrodec's plants are located at Canton, Ohio, US and Young, New South Wales, Australia. The Group's shares are listed on the AIM Market of the London Stock Exchange. For further information, please visit www.hydrodec.com.