12 Dec 2013 07:00
12 December 2013
CORAC GROUP PLC
Corac Energy Technologies signs follow-on renewable energy agreement
Corac Group plc is pleased to announce that its subsidiary Corac Energy Technologies (CET) has signed a three-way agreement with an American Venture Capital green technology investment partner and a UK manufacturing partner to develop, manufacture and market commercial pressure let down expanders to generate electricity from waste energy in gas production and distribution systems.
This new contract follows an initial agreement between the parties to explore the technologies, first announced 30 October 2012. The electricity generated through the proposed system will either be routed to the distribution grid or to provide power for other systems within existing gas fired power stations. This is initially a US market initiative with potential worldwide scope.
The contract begins with a project to design and build a prototype system at a value of £0.4m to be delivered by Autumn 2014. Following this, there is an option for CET to produce a further five units and then provision for an ongoing licensing arrangement on volume units to be produced by the manufacturing partner. This would take total contract value to circa £4.4m over five years with ongoing royalties per unit thereafter.
Options also exist for a future switch to a gain share return on the power generated.
Corac Group Chief Executive Phil Cartmell commented:
"This agreement is a great step forward in defining the commercial and technical programme to develop renewable energy systems based upon Corac's unique technologies, and adds visibility to CET's growing 2014 order book.
"Wherever there is a pressure differential there is the potential to generate electricity. We understand there are thousands of application sites in the United States, and further opportunities to open other markets and applications using our core technologies; this has the potential to have a major impact on the global renewable energy market."
Ends
For further information please contact:
Corac Group plc | www.corac.co.uk |
Phil Cartmell, Chief Executive Officer | 01753 285 800 |
Jon Carter, Chief Financial Officer | |
Cenkos | |
Ivonne Cantú / Elizabeth Bowman - Nomad | 020 7397 8980 |
Jeremy Warner-Allen - Sales | |
MHP Communications | 020 3128 8100 |
Reg Hoare / Vicky Watkins / Naomi Lane |
NOTES TO EDITORS
Corac is a group of innovative UK based engineering companies, active in energy and environmental technologies. Group companies produce valuable solutions in compression systems, atmosphere management and heat exchangers for government, energy and industrial users. It has traded shares on the London Alternative Investment Market (AIM) since July 2001.