Last checked at 4 Sep 2008 07:00
4 September 2008
Sabien Technology Group Plc
Contract Win Announcement
Sabien is pleased to announce it has been awarded a contract by Norwich Union (an AVIVA company) worth £188,000 to install Sabien's M2G technology at its offices in the UK. AVIVA is the world's fifth-largest insurance group and the largest insurance services provider in the UK.
The contract for Sabien's M2G energy efficiency technology demonstrates AVIVA's commitment to the environment and will be important in reducing its energy consumption and carbon footprint.
Increasing legislation, energy price increases and commitments to reduce carbon emissions have created the need for organisations to implement robust energy reduction strategies. In order to assist potential customers to identify where they could make substantial energy savings with quick payback, Sabien launched its Project 10 pilot scheme in 2007-8 with a number of major organisations to enable them to see for themselves on a trial basis how Sabien's M2G could provide substantial reductions in energy usage. Over the last 18 months, our clients and Project 10 participants have been focusing on analysis, auditing and base-lining their energy use to establish the areas in which to implement energy efficiency initiatives.
With heating (for space and water) and air conditioning typically accounting for 61% of energy costs (source: BERR estimates from data supplied by the Building Research Establishment), we are confident that organisations' primary focus will be in this area. With proven validation of the savings M2G can deliver, Sabien is confident that more organisations like Norwich Union will implement M2G as part of their carbon reduction strategy.
Gregory Luxford, Norwich Union (Energy & Utilities) said:
"AVIVA has a well established CSR policy and is committed to reducing its impact on the environment. As part of this, Norwich Union sets targets each year to reduce its carbon footprint. The reductions achieved by M2G in a wide range of case studies at other organisations were impressive and we wanted to confirm these ourselves with a pilot scheme managed by Sabien at a number of our sites. Sabien were open and easy to work with and this, together with the impressive savings achieved, made a strong case to adopt M2G across the Norwich Union estate."
Alan O'Brien, Chief Executive Officer, said:
"Our Project 10 pilots during 2007 and 2008 proved to participants that savings of up to 35% could be achieved by installing Sabien's M2G technology.
"Norwich Union was one of those companies that participated in Project 10 this last heating season and it is a strong endorsement for Sabien that the savings M2G delivered, in terms of energy
consumed, reduction in CO2 emissions and proven financial paybacks of under 2 years, met with the client's investment criteria.
"Many of our clients are seeing their energy contract costs increasing from 60% to 120% at the point of renewal throughout 2008 and 2009. The 2009 - 2011 wholesale energy market forecasts price fluctuations of between £0.76 and £0.71 p/therm (source: Heren Energy). There are no signs of energy prices reducing to pre 2007/2008 levels.
"Recent legislation is beginning to accelerate momentum for both private and public sector organisations to implement energy efficient technology. For example, CRC (Carbon Reduction Commitment) and DEC (Display Energy Certificates) are now in place. In July 2008, 10,000 organisations were contacted, informing them that they might be included in the CRC. DEC's must be displayed in any public building over 1,000m2. This legislation will lead to increased focus on implementing energy efficiency initiatives to meet the targets and requirements. In addition, the government has implemented Sustainable Operation Targets to reduce carbon emissions by 12.5% and energy efficiency per m2 by 15% across its own
estate.
"I believe Sabien Technology is now well placed to become a significant player in the UK energy efficiency sector."
About Sabien:
Sabien Technology Group (AIM: SNT) is focused on the manufacture and sale of M2G and M3G energy saving devices which are proven to reduce energy consumption on commercial boilers and air conditioning units by up to 35%.
For further information:
| Sabien Technology Group plc Alan O'Brien - Chief Executive Officer Gus Orchard - Finance Director
| 020 7993 3700 |
| Arbuthnot Securities (NOMAD) Antonio Bossi | 020 7012 2000 |
| Madano Partnership (Financial PR Advisers) Mark Way/Dominic Barretto | 020 7593 4000 |