HYR.L Regulatory News (HYR)

9 Mar 2006 09:53

HydroDec Group plc09 March 2006 Press release 9 March 2006 Hydrodec Group plc: STANDING ORDER RECEIVED FROM TRANSGRID Hydrodec Group plc ("Hydrodec") is pleased to announce that TransGrid, the NSWpower transmission Authority has issued a standing purchase order advising thatHydrodec is now qualified to treat its used low level and high level PCBcontaminated transformers and associated equipment. The standing purchase orderapplies until February 2008. The purchase order is conditional on Hydrodec completing the construction of thededicated transformer recycling facility announced in December 2005. Detailedplanning of the transformer recycling facility is nearing completion and theforecast commencement of operation at the start of Q3 2006 remains. Thetransformer recycling facility represents a new revenue stream for the New SouthWales operating facility. When operational, the new recycling facility when combined with the Hydrodecrefining technology will provide the power industry with a cost competitive,zero emission, zero waste means of dealing with both PCB and non PCBcontaminated used equipment. It will also ensure the maximum return of usedtransformer oils to Hydrodec for refining. Hydrodec believes this technologywill meet the growing demand within the power industry for products and servicesthat manage the "extended producer responsibility" risks that confront all largeorganisations. Chairman John Gunn commented that "Although the order does not guaranteeHydrodec a specific quantum of work or revenue during the period of the order,it reinforces the decision to proceed with construction of the used transformerrecycling facility at our operating site in New South Wales. This is part ofHydrodec's comprehensive service for the management of PCB's within the powerindustry. " Contacts: John Gunn - Hydrodec 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"). About TransGrid: TransGrid is the owner, operator and manager of the high voltage electricitytransmission system throughout New South Wales, Australia. TransGrid transmitelectricity across NSW through 12,016 kilometres of high voltage transmissionlines supported by about 20,000 structures. The high voltage electricity systemalso comprises 76 substations and power station switchyards. TransGrid's systemis a major part of one of the most extensive systems in the world -interconnected with the Victorian, South Australian and Queensland systems. This information is provided by RNS The company news service from the London Stock Exchange