HYR.L Regulatory News (HYR)

24 Apr 2006 07:01

HydroDec Group plc24 April 2006 HYDRODEC GROUP PLC PROGRESS UPDATE : 20,000 LITRE PER DAY PLANT AND INTERNATIONAL PRODUCT ACCEPTANCE Hydrodec Group plc ("Hydrodec") is proud to announce: •The completion of commissioning of its new 20,000 litre per day refining facility in Young NSW. •An excellent outcome from independent technical assessment of Superfinetm transformer oil by leading US laboratories. •Ongoing market take up of new plant capacity. New Plant:On 31 March Hydrodec announced delivery of the new 20,000 litre per day refiningplant to its production site in Young NSW. The connection of the new plant tothe site infrastructure and the commissioning of the plant and its additionalauxiliary facilities are complete. Tuning of the plant in production mode and full production trials will startduring week commencing 24 April and it is anticipated that proof of performancefor the plant at nameplate production capacity will be completed within weeks.Hydrodec is particularly proud of the short commissioning period achieved andthe successful commencement of production runs within weeks of delivery of theraw plant to the Young site. Test Results:Hydrodec has received the results of independent testing of Superfinetm oil bySD Myers and Doble Engineering laboratories in the USA. Testing was initiated aspart of the internationalisation strategy for the Hydrodec technology. Theresults have confirmed Hydrodec Superfinetm is first quality transformer oil. The independent report concluded that "This is a high quality mineral insulatingoil meeting industry standards". In particular Superfinetm proved to haveexcellent oxidation stability and very good corrosive sulphur results whenevaluated against extended corrosive sulphur test regimes. The test outcomes,delivered by internationally recognised laboratories, support previous resultsfrom independent Australian laboratories. Ongoing market take up of new plant capacity:In parallel with start up of the new plant Hydrodec is currently finalising witha NSW power utility agreement for forward commitment to 12 months supply ofSuperfinetm oil in parallel with 12 months treatment of an equivalent quantityof used and low level PCB contaminated oil at the approximate rate of 15.000litres per month. This work forms a component of the ongoing maintenance for theNSW high voltage electricity distribution system. Chairman John Gunn said: "Superfine transformer oil is progressively securinginternational technical acceptance and continues to increase its marketpenetration in Australia. Hydrodec's performance in bringing the new plant on line and the new ordersreceived demonstrates the success of the company's strategy of investment in newplant and facilities, which is leading to significant new oil sales. Management experience and skills developed during the past year provide a basisthat will underpin targeted growth into international markets in the future". For further information please contact:- John Gunn - Hydrodec 020 7236 6236 Nick Fox - M Communications 020 7153 1540 About Hydrodec: Hydrodec was established to commercialise the Hydrodec technology which is anoil re-refining process designed to remove harmful contaminants such as PCBs.The Hydrodec technology is based on intellectual property comprising a protectedpatent in Australia and certain other jurisdictions developed by theCommonwealth Scientific and Industrial Research Organisation ("CSIRO") ofAustralia. Hydrodec has entered into an exclusive global license with CSIRO forthe marketing and distribution of the Hydrodec technology. Last year, it committed the sum of £1 million (one million pounds) to theconstruction of a new, larger Hydrodec plant capable of processing up to 20,000litres per day of speciality oils and/or chlorinated organic wastes. The Companyanticipates that the plant will be in operation by Spring 2006. When fullyoperational, the new plant will produce a near seven-fold increase in Hydrodec'sprocessing capacity. Since June 2004 a 3,000 litre per day Hydrodec plant has been operating inAustralia principally re-refining PCB contaminated transformer oils forAustralian power utilities. The technology has also been used to treat avariety of other chlorinated organic wastes, commonly referred to as "PersistentOrganics Pollutant" ("POPs"). This information is provided by RNS The company news service from the London Stock Exchange