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Joint solution to significantly reduce capital costs and expand market opportunities
QUEBEC CITY, June 22, 2015 /CNW/ - CO2 Solutions Inc. (CO2 Solutions or "the Corporation") (TSX-V: CST), the leader in the field of enzyme-enabled carbon capture technology, today announced that it has entered into an exclusive Collaboration Agreement (the Agreement) with Cleveland, Ohio-based Cleveland Gas Systems, LLC, dba GasTran Systems ("GTS", or "GasTran"), the leading provider of high-intensity gas-liquid rotating packed bed (RPB) mass transfer technology. The collaboration further strengthens the key value propositions of CO2 Solutions' carbon capture technology, namely low cost and environmental friendliness.
Under the terms of the Agreement, CO2 Solutions and GTS will collaborate on bringing to market an advanced carbon capture solution, combining CO2 Solutions' non-toxic enzyme-enabled capture process and GasTran's RPB technology. Synergies observed during initial joint testing, at a scale of approximately 0.5 tonnes of CO2 captured per day, show potential for capture equipment 20 times smaller than conventional equipment. This would significantly reduce capital costs, as well as increase the applicability of CO2 capture at many emitter locations where space and footprint considerations are as important as cost, such as power plants and refineries.
Additionally, the joint testing demonstrated that the Corporation's proprietary enzyme–based solvent dramatically outperforms amine solvents in terms of CO2 absorption kinetics, while at the same time being environmentally friendly. Absorption rates 5 times faster than a conventional amine solvent were observed in the RPB. As opposed to amine-based technology, no harmful aerosols were emitted and no harmful waste products were generated.
"We believe this collaboration with GasTran will significantly increase our market reach, driven both by compelling economics and installation considerations" said Evan Price, President and CEO of CO2 Solutions. "The new solution complements our existing packed-column based technology, which we are looking to commercialize this year, bringing us greater flexibility to pursue further commercial opportunities. This lower cost, dramatically more compact solution, also has the potential of eventually replacing current packed column technology".
"We are looking forward to teaming with CO2 Solutions to demonstrate this breakthrough technology for carbon capture," said Matthew Brinn, President and CEO of GasTran. "We anticipate realizing very significant synergies from the collaboration, making this an important opportunity for us to penetrate large existing markets for the commercial reuse of CO2".
The tests conducted on the combined solution build further on the results achieved by CO2 Solutions' pilot work announced April 30th. Capture costs for the Corporation's technology, based on conventional packed-column equipment, were found to be already below the U.S. Department of Energy target for the year 2025, ten years ahead of schedule. Using the RPB technology, further reductions in capital and operating costs will further extend the Corporation's industry-leading position. Under the terms of the Agreement, GTS will work exclusively with CO2 Solutions in the field of CO2 capture, and will provide RPB units for CO2 Solutions' demonstration and commercial projects. GTS will also refer customer leads to CO2 Solutions.
The GTS RPB technology is based on the principle of increasing, by orders of magnitude, the effective surface area of a liquid to facilitate gas absorption and maximizing the amount of a gas to be absorbed by the liquid phase. This commercially proven technology has an excellent operational record in other gas-liquid mass transfer applications, such as deaeration of liquids in the beverage industry, and in large-scale chemical production. The collaboration builds on this operational and commercial success, making the RPB available for the first time for carbon capture, made possible by CO2 Solutions` proprietary enzymatic technology.
In connection with the execution of the Agreement, the Corporation will issue 200,000 common share purchase warrants to GTS. Each such warrant entitles its holder to acquire one common share of the Corporation at a price of CAD$0.271 per common share until June 22, 2018 or until the Agreement is terminated in certain circumstances and are subject to a 4 month statutory hold period until October 22, 2015.
The Corporation has also agreed to issue to GTS up to an aggregate of 800,000 additional common share purchase warrants of the Corporation (a "Warrant") in four equal tranches of 200,000 upon each of the first four anniversary dates of the Agreement. Each Warrant will, if issued, entitle the holder thereof to acquire one common share of the Corporation (a "Common Share") at a price per Common Share equal to the higher of (i) the 30-day volume-weighted average trading price in Canadian dollars of the CSI Share calculated on the day preceding the grant of the tranche; (ii) the closing trading price of the CSI Shares on the day preceding the grant of the specific tranche, or (iii) CAD$0.20.
About GasTran Systems
GasTran Systems is rapidly transforming a variety of industries with its patented process intensification approach to combining and separating gases and liquids. The company designs, builds, and installs industrial water treatment systems and equipment to meet the needs of its customers. Every system comes with GasTran's expertise in finding a solution to satisfy and then exceed customer process improvement goals. Further information can be found at www.gastransfer.com
About CO2 Solutions Inc.
CO2 Solutions is an innovator in the field of enzyme-enabled carbon capture and has been actively working to develop and commercialize the technology for stationary sources of carbon pollution. CO2 Solutions' technology lowers the cost barrier to Carbon Capture, Sequestration and Utilization (CCSU), positioning it as a viable CO2 mitigation tool, as well as enabling industry to derive profitable new products from these emissions. CO2 Solutions has built an extensive patent portfolio covering the use of carbonic anhydrase, or analogues thereof, for the efficient post-combustion capture of carbon dioxide with lowenergy aqueous solvents. Further information can be found at www.co2solutions.com.
CO2 Solutions Forward-looking Statements
Certain statements in this news release may be forward-looking. These statements relate to future events or CO2 Solutions' future economic performance and reflect the current assumptions and expectations of management. Certain unknown factors may affect the events, economic performance and results of operation described herein. CO2 Solutions undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE CO2 Solutions Inc.
For further information: Investor Relations and Media Contact: CO2 Solutions: Thom Skinner, 418-842-3456, ext. 223, [email protected], www.co2solutions.com; or TMX Equicom, Marc Lakmaaker, 416-815-0700, ext. 248, [email protected]