Last checked at 10 Nov 2008 07:00
10 November 2008
PRESSURE TECHNOLOGIES PLC
("Pressure Technologies" or the "Group")
NEW BIOGAS DIVISION
The Board of Pressure Technologies is pleased to announce that, in line with its strategy to broaden the Group's activities, it has established a new operating division, Chesterfield BioGas, following the signing of a co-operation agreement with Greenlane® Biogas Limited, the world leader in biogas upgrading from raw biogas to vehicle quality fuel.
Under the agreement, which gives Pressure Technologies exclusive rights to market Greenlane® equipment in the UK and Eire, Chesterfield BioGas will provide turnkey solutions for the cleaning, storage and dispensing of biomethane, produced from waste water treatment and anaerobic digestion of organic waste.
The UK market for biomethane has, to date, remained untapped, largely due to a limited availability of methane-fuelled vehicles and subsidies for combined heat and power plants, which have made the injection of methane into the gas grid uneconomic. These two factors are now being addressed. Mercedes and Volkswagen are now producing right-hand drive methane fuelled vehicles for the UK market and the Energy Bill has been changed to pave the way for financial incentives designed to encourage direct injection of biomethane into the gas grid.
Chesterfield BioGas will develop the UK market for biogas cleaning equipment, which provides clean biomethane suitable for use as an alternative vehicle fuel or for direct injection into the natural gas grid, across a wide range of commercial sectors. These will include waste management and water treatment companies, as well as large commercial farmers and waste food processors. Due to the complexity of UK planning law and lead times on equipment, it is anticipated that orders secured by Chesterfield BioGas in 2009 will not contribute to Group revenues until the year ending 30 September 2010.
John Hayward, Chief Executive of Pressure Technologies, said: "This is a low-risk, tried and tested biomethane fuel solution for the UK market. Our joint skills and experience in this field mean that we are able to deliver an effective and successful system, when others can only offer prototypes. It is our intention for Chesterfield BioGas to be the number one choice for biogas processing in the UK and Eire."
Greenlane® Biogas Managing Director, Steve Broadbent, added: "As well as a good business case for teaming up with Pressure Technologies, there is an excellent cultural fit between our two companies in terms of our approach to the design and delivery of major capital projects."
For further information, please contact:
Pressure Technologies plc Today: 01653 618 016
John Hayward, Chief Executive Thereafter: 0114 242 7500
James Lister, Group Finance Director www.pressuretechnologies.co.uk
Greenlane® Biogas Limited Tel: +46 707 707 158
Morgan Jansson www.greenlanebiogas.com
Rawlings Financial PR Limited Tel: 01653 618 016
Catriona Valentine www.rawlingsfinancial.co.uk
Keeley Clarke
Brewin Dolphin Investment Banking Tel: 0845 213 4730
Neil Baldwin
Sean Wyndham-Quin
Company description:
Pressure Technologies is the holding company for Chesterfield Special Cylinders Limited ("CSC"). CSC designs, manufactures and offers retesting and refurbishment services for a range of speciality high pressure, seamless steel gas cylinders for global energy and defence markets. The business has been conducted under the "Chesterfield" brand which is a long established name in the cylinders and specialised pressure vessel market.
Based at Meadowhall, Sheffield, the Group's vision is to grow the business through a mixture of organic growth, diversification and the acquisition of complementary businesses to achieve a £40 million turnover business within five years of the June 2007 flotation on AIM.