Xebec Adsorption Inc. (TSX: XBC) (“Xebec”), a
global provider of clean energy solutions, is pleased to announce
today that it has signed a Master Service Agreement (“MSA”) with a
leading U.S.-based renewable natural gas (“RNG”) dairy farm project
developer for the purchase of BGX Biostream™ (“Biostream”) units.
The MSA will support the order of an initial 18 units, with the
potential for additional orders under the same service agreement.
This agreement represents the single largest unit order the company
has received to date for Biostream and the largest in number of
systems ever awarded in North America for dairy farm biogas
upgrading projects.
As a result of the MSA and additional expected
orders, Xebec has also started the production of 30 Biostream units
for delivery over the next year. The company’s increased
manufacturing requirements are in part supported by the recently
announced acquisition of Tennessee-based Nortec. Xebec’s Canadian
manufacturing facility is being modified and is expected to allow
for the annual production of approximately 30 to 40 Biostream
units. In addition, the company is exploring new capacity in the
U.S. as more purchase orders are signed.
“This is fantastic validation of our new
Biostream product that is focused on animal manure feedstocks. The
team has worked hard over the last two years to develop this
containerized system which offers many benefits to customers such
as short delivery times, fast installation, modularity, ability to
automatically handle fluctuating flow rates, low operating costs
and equally important, a very competitive price. This MSA shows the
strong value proposition developers and farmers see in our
products, as they accelerate the development of carbon-negative
renewable natural gas production. We are proud to be playing such
an important role in this energy transition and look forward to
ramping up our production capacity,” stated Kurt Sorschak,
Chairman, CEO and President of Xebec Adsorption Inc.
Starting at a list price of USD $1.5 million,
Biostream is an ideal solution for dairy farmers because of its
containerized and fully automated design that offers easy and quick
installation and commissioning, which combined, takes approximately
10 days. Customers will also enjoy the peace of mind knowing that
Xebec’s Cleantech Service Network (CSN) will support them locally
throughout the entire setup process and for the lifetime of their
renewable natural gas equipment.
Biostream is positioned to capture the
U.S. animal manure RNG marketAccording to the American
Biogas Council, it is estimated that 8,574 dairy, poultry, and
swine farms are primed for biogas and renewable natural gas
production. Biostream is estimated to cover more than 80% of these
animal manure use cases with multiple standardized configurations
which range in capacity between 50 to 840 SCFM (90 to 1350
NCMH).
Dairy farms are leading livestock based
RNG production in the U.S.According to the EPA AgSTAR
project database, as of May 2021, there are 333 operational and
under construction digester projects that accept livestock manure.
The majority (approximately 82%) of the manure-based digester
projects are at dairy farms, and the rest are at swine or poultry
farms. Of the 333 biogas projects, approximately 98 of them are
producing RNG for the local CNG transportation market or for
injection into the local pipeline.
RNG from dairy manure is unique in its
carbon-negative attributes, with a negative carbon intensity score
of -100 to -400 (according to California Air Resources Board)
compared to a carbon intensity score of 102 and 34 to 75 for diesel
and corn ethanol, respectively.
Xebec continues to see a positive and
accelerating backdrop for the RNG industry as organizations and
governments around the world aim to manage organic waste more
effectively and decarbonize the energy supply, transportation and
industry.
Related
links:https://www.xebecinc.com
Media Inquiries:Public Relations for
XebecVictor Henriquez, Senior
Partnervictor@publicsc.com+1 514.377.1102
Investor Relations:Xebec
Adsorption Inc.Brandon Chow, Director, Investor
Relationsbchow@xebecinc.com+1 450.979.8700 ext 5762
About Xebec Adsorption
Inc.Xebec is a global provider of clean energy solutions
for renewable and low carbon gases used in energy, mobility and
industrial applications. The company specializes in deploying a
portfolio of proprietary technologies for the distributed
production of hydrogen, renewable natural gas, oxygen and nitrogen.
By focusing on environmentally responsible gas generation, Xebec
has helped thousands of customers around the world reduce their
carbon footprints and operating costs. Headquartered in Québec,
Canada, Xebec has a worldwide presence with seven manufacturing
facilities, eight Cleantech Service Centers and five sales offices
spanning over four continents. Xebec trades on the Toronto Stock
Exchange under the symbol (TSX: XBC). For more
information, xebecinc.com.
Cautionary Statement This press
release contains forward-looking statements within the meaning of
applicable Canadian securities law. These statements relate to
future events or future performance and reflect the expectation of
Management regarding the growth, results of operations, performance
and business prospects and opportunities of the Corporation or its
industry. Forward-looking statements typically contain words such
as “believes”, “expects”, “anticipates”, “continues”, “could”,
“indicates”, “plans”, “will”, “intends”, “may”, “projects”,
“schedules”, “would” or similar expressions suggesting future
outcomes or events, although not all forward-looking statements
contain these identifying words. Examples of such statements
include, but are not limited to, statements concerning: (i) the
potential for additional Biostream units to be purchased under the
same MSA; (ii) ramp up of the Biostream production units to 30-40
in annual production and (iii) the Corporation’s ability to capture
the large-scale dairy manure to RNG market in the U.S as noted in
this press release.
These statements are neither promises nor
guarantees but involve known and unknown risks and uncertainties
that may cause the Company’s actual results, level of activity or
performance to be materially different from any future results,
levels of activity or performance expressed in or implied by these
forward-looking statements. These risks include, generally, risks
related to the ability of the Corporation to execute its strategy,
operating results, purchasing third party supplies for key
materials and components in a timely and cost effective basis,
industry and products, technology, competition, ability to attract
and retain qualified personnel, ability to manage successfully the
anticipated expansion of our operations, the economy, the
sufficiency of insurance and other factors which are discussed in
greater details in the most recent quarterly management discussion
ana analysis (“MD&A”) and in the Annual Information Form of the
Corporation filed on SEDAR at www.sedar.com.
Forward-looking statements contained herein are
based on a number of assumptions believed by the Corporation to be
reasonable as at the date of this press release, including, without
limitations, assumptions about trends in certain market segments,
the economic climate generally, the pace and outcome of
technological development, the identity and expected actions of
competitors and customers, the value of the Canadian dollar and of
foreign currency fluctuations, interest rates, the anticipated
margins under new contracts awards, the state of the Corporation’s
current backlog, the regulatory environment, and the procurement of
key material and components of products. If these assumptions prove
to be inaccurate, the Corporation’s actual results may differ
materially from those expressed or implied in the forward-looking
statements. The forward-looking statements contained herein are
made as of the date of this press release and are expressly
qualified in their entirety by this cautionary statement. Except to
the extent required by law, the Company undertakes no obligation to
publicly update or revise any forward-looking statements contained
herein. Readers should not place undue reliance on forward looking
statements.
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