TIDMSCIR
RNS Number : 0505V
Scirocco Energy PLC
09 December 2021
09 December 2021
Scirocco Energy plc
("Scirocco Energy" or "the Company")
SCIROCCO ENERGY UK LIMITED ("SEUK") signs H(2) OPE System
technology exclusivity with SEM Energy Limited ("SEM")
Scirocco Energy (AIM: SCIR), the AIM investing company targeting
attractive assets within the European sustainable energy and
circular economy markets, is pleased to announce that, its
subsidiary, SEUK has signed an exclusivity agreement with leading
sustainability technology provider, SEM. This exclusivity will be
for the benefit of SEUK, its affiliates and its investee company
Energy Acquisitions Group Limited ("EAG").
SEM (https://sem.world/), is a leading developer of technologies
within the circular economy sector. It is anticipated that SEM will
provide EAG with digestate management and nutrient recovery
technology, known as H(2) OPE System.
The system processes digestate, a by-product of the biogas
process, into nutrient dense, high-quality fertiliser,
nutritionally balanced growth media and a sustainable peat
substitute which can be used within a range of growing environments
across the sector. It also produces re-usable water, and
significantly reduces CO(2) emissions compared to traditional
practices. Trials are also taking place for the use of the material
to make biodegradable plant pots for nurseries and growers,
removing the reliance on single use plastic.
Key terms of the agreement:
-- SEM will exclusively supply to SEUK, its Affiliates, EAG (the
"Scirocco Parties"), the H(2) OPE System for the application to
digestate generated from AD plants within the UK and Ireland;
-- The exclusive period runs until end June 2023, unless
extended by the parties in accordance with the agreement;
-- SEUK will use reasonable endeavours to purchase or procure
that the Scirocco Parties purchase a minimum of five units of the
H(2) OPE System within the exclusivity period;
-- If Scirocco Parties do not meet certain order requirements
during the exclusivity period, the exclusivity may fall away, but
Scirocco Parties are still able to order units of the H(2) OPE
System from SEM during the term on a non-exclusive basis.
EAG intends to apply the technology to its operating plant at
Greenan, as well as working with other owners of other operational
AD plants to assess the potential benefits of funding the
installation of a 'bolt-on' nutrient recovery system on a merchant
basis.
The addition of the H(2) OPE System technology to existing AD
plants has the potential to deliver an additional revenue stream
through the creation of high value co-product, depending on the
level of refinement required for a specific market sector while
simultaneously reducing the carbon intensity of the process.
Commenting on the agreement, Scirocco CEO Tom Reynolds said
:
"This represents the next step in our investment strategy
supporting investment in 'Circular' within the agricultural sector,
alongside our existing investment in EAG. The application of this
kind of technology will help optimise the operational and
environmental performance of our current and expected future AD
plants, as well as providing a new revenue stream that can be
scaled in line with our portfolio. The exclusive nature of the
agreement provides Scirocco Energy and its investee company, EAG,
with a valuable head start in deploying a value adding technology
to its asset base as it grows."
Chris Kerr, MD of EAG added:
"Firstly, this technology enables EAG to implement its active
optimisation programme for its current assets, driving value
through each of the businesses, and also solves the issue of
digestate spreading to land, which in some cases is already
saturated with nutrients. Recovery of nutrients from the biogas
process is the perfect opportunity to provide growers and their
customers in the fresh produce sector with a sustainable and
effective alternative to fossil fuel derived fertilisers.
"Reducing carbon through the food chain is something we have
been focussed on for a number of years now, and we believe the
end-to-end nature of the SEM technology will provide the entire
fresh produce sector in the UK and Ireland the opportunity to
introduce a genuinely circular economy into their business
models."
John Jones, CEO and Founder of SEM Ltd added:
"Our engagement with EAG and Scirocco Energy is fantastic news
for SEM. Their understanding of what the market needs are, and
exactly where our technology fits within that space has made the
deal straightforward. It has been really exciting working up the
plans for the new plants at which the technology is expected to be
deployed throughout 2022.
"At SEM we have a vision of a waste-free circular economy both
now and in the future, securing our planet's health and wealth for
generations to come. Our H(2) OPE technology is set to have a
hugely positive impact on the environment, as well as on the
agriculture industry, by maximising the conversion of waste
co-products into valuable by-products, while significantly cutting
CO(2) emissions.
"Both EAG and Scirocco Energy share this vision - a common
alignment which will ensure our strong future working relationship
gets off to the best possible start. We can't wait to see where the
next part of the journey takes us all."
For further information:
Scirocco Energy plc
Tom Reynolds, CEO
Doug Rycroft, COO +44 (0) 20 7466 5000
Strand Hanson Limited, Nominated Adviser
Ritchie Balmer / James Spinney / Rory Murphy +44 (0) 20 7409 3494
WH Ireland Limited, Broker
Harry Ansell / Katy Mitchell +44 (0) 207 220 1666
Buchanan, Financial PR
Ben Romney / Jon Krinks / James Husband
About SEM
Fuelled by a belief that there is a better way to repurpose 'waste' and recover resources
and nutrients where possible, we have applied our experience and engineering know-how to
develop
a range of novel, patented technologies that empower businesses to reduce waste, manage
co-products
and, where possible, generate by-products to add value to their waste streams.
For more information visit https://sem.world +44 (0) 20 7466 5000
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