BLAINVILLE, QC, April 23, 2012 /CNW Telbec/ - Xebec Adsorption Inc. (TSX: XBC) ("Xebec"), a provider of biogas upgrading, natural gas and hydrogen purification solutions for the clean energy market, announced today that it has received its first order for a BGX advanced kinetic landfill gas separation system, which will be installed in early 2013 at a landfill in northern China's Liaoning province. In addition, the Chinese customer and Xebec have entered into an exclusive distribution agreement for Xebec's range of BGX landfill gas upgrading systems in mainland China.
Xebec's customer and partner, Beijing Golden Green Environmental Engineering & Technical Co. Ltd., a leading Chinese environmental engineering firm specialized in landfill engineering and remediation work, with its head office in Beijing, selected Xebec's advanced kinetic PSA upgrading system after 18 months of detailed evaluation and site visits to North America. The decisive selection criteria was Xebec's ability to separate higher levels of nitrogen (N2) and oxygen (O2) from landfill gas than competing systems, while maintaining excellent recovery rates at around 90%. Consequently, Xebec's system could effectively compete against much lower priced local offerings which have significantly lower recovery rates, and therefore lower associated revenues compared to Xebec's system. The upgraded landfill gas will be compressed and used as renewable fuel in the transportation sector.
Furthermore, Xebec has entered into an exclusive agreement with this leading Chinese environmental engineering firm for the potential delivery of 14 additional upgrading systems over the next 48 months. The value of these medium sized upgrading systems will be in the range of CDN 1.7 million to CDN 5.5 million each, depending on the landfill gas flow rates and gas composition. All systems will be designed, manufactured and cost optimized at Xebec's Shanghai facility
Currently, the majority of landfill gas projects in China are for electricity generation, but as the price of natural gas in the Chinese transportation sector increases, landfill operators are looking increasingly towards upgrading the gas to higher value transportation fuel.
Xebec and it's Chinese partner will primarily focus on the 150 to 170 medium sized landfills in China, that qualify for upgrading landfill gas to renewable transportation fuel.
"This first BGX landfill gas order and the exclusive distribution agreement are a breakthrough for Xebec in the Chinese landfill gas market. We and Golden Green Environmental expect to become the leading landfill gas upgrading providers in China within the next 2 to 3 years. We are especially pleased that this Canadian developed technology can help our Chinese partners and customers implement environmentally friendly and economically viable renewable energy projects that bring real benefits to China." said Graham Robson, Xebec's Vice President for Asia/Pacific Operations.
No further details were disclosed.
About Xebec Adsorption Inc.
Xebec Adsorption Inc. is a global provider of clean energy solutions to corporations and governments looking to reduce their carbon footprints. Xebec designs, engineers and manufactures innovative systems that transform raw gases into marketable sources of clean energy. Xebec's strategy is focused on establishing leadership positions in markets where demand for biogas upgrading, natural gas dehydration and hydrogen purification is growing. Headquartered in Montreal (QC), Xebec is a global company with two state-of-the-art manufacturing facilities in Montreal and Shanghai, as well as a sales and distribution network in North America and Asia. Xebec trades on the TSX under the symbol XBC. For additional information on the company and its products and services, please visit the Xebec web site at www.xebecinc.com.
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President and CEO
Vice President Asia/Pacific Operations