HydroDec Group plc Initial Sale of Carbon Credits (3956E)
May 08 2017 - 1:00AM
UK Regulatory
TIDMHYR
RNS Number : 3956E
HydroDec Group plc
08 May 2017
08 May 2017
Hydrodec Group plc
("Hydrodec" or the "Company")
Initial Sale of Carbon Credits
Hydrodec Group plc (AIM: HYR), the clean-tech industrial oil
re-refining group, is pleased to confirm that it has successfully
agreed its first trade of carbon credits in respect of the credits
recognised by the American Carbon Registry ("ACR") under its
accreditation granted last year.
The sale, whilst nominal in value, is in respect of a proportion
of those credits generated by Hydrodec of North America ("HoNA")
and recognised by the ACR for HoNA's previous production between
2009 and 2014. The Company anticipates that going forward it will
generate 50,000 to 60,000 tons of carbon offset annually and
expects it could earn up to $5 per ton from the ongoing generation
of such credits based on recent industry publications.*
Commenting on the sale, Chris Ellis, Chief Executive Officer of
Hydrodec said: "At the time of the announcement of the approval our
expectations were that we should only expect a nominal sum for the
credits recognised by the ACR for our past production in the US.
However, what this sale does provide is evidence that there is an
active market for our carbon credits and this important incremental
revenue stream can begin to be realised. Over time the ability to
sell carbon credits will enable Hydrodec to further develop
commercial relationships with key transformer manufacturers and
utilities in our target markets."
*Source: Carbonomics
For further information, please contact:
Hydrodec Group plc
Chris Ellis, Chief Executive
Officer 01372 824 750
Canaccord Genuity
(Nominated Adviser and
Broker)
Henry Fitzgerald-O'Connor
Richard Andrews 020 7523 8000
Vigo Communications
(PR adviser to Hydrodec)
Patrick d'Ancona
Chris McMahon 020 7830 9700
Notes to Editors:
Hydrodec's technology is a proven, highly efficient, oil
re-refining and chemical process initially targeted at the
multi-billion US$ market for transformer oil used by the world's
electricity industry. MarketsandMarkets forecasts that the global
transformer oil market is expected to grow from US$1.98 billion in
2015 to US$2.79 billion by 2020 at a CAGR of 7.14%. Spent oil is
currently processed at two commercial plants with distinct
competitive advantage delivered through very high recoveries (near
100%), producing 'as new' high quality oils at competitive cost and
without environmentally harmful emissions. The process also
completely eliminates PCBs, a toxic additive banned under
international regulations. Hydrodec's plants are located at Canton,
Ohio, US and Bomen, New South Wales, Australia.
Hydrodec's shares are listed on the AIM Market of the London
Stock Exchange. For further information, please visit
www.hydrodec.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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