BLAINVILLE, QC, June 26, 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 second purchase order for a BGX kinetic landfill gas separation system from China's Golden Green Environmental Engineering & Technical Co. Ltd. (Golden Green). The System will be installed in early 2013 at a landfill in Anshan City. The upgraded landfill gas will be compressed and used as renewable fuel in the transportation sector.
Xebec's customer and partner, Golden Green is a leading Chinese environmental engineering firm that specializes in landfill engineering and remediation work. This second purchase order from Golden Green is part of the broader distribution agreement signed earlier this year between the two companies. This exclusive agreement calls for the potential delivery of 15 upgrading systems over the next 4 years. The value of these small to medium sized upgrading systems range between CDN$1.7M to CDN$5.5M 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.
Xebec's ability to separate higher levels of nitrogen (N2) and oxygen (O2) from landfill gas sites, while maintaining excellent recovery rates at around 90% continues to offer solid competitive advantages for customers. Less effective equipment providers offer significantly lower recovery rates, and therefore lower associated revenues for customers using these systems when compared to Xebec's BGX.
The majority of current 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 Golden Green will continue to focus on the 150 to 170 medium sized landfills in China that qualify for upgrading landfill gas to renewable transportation fuel.
"This second BGX landfill gas order is a further step forward for Xebec in the Chinese landfill gas market, further reinforcing our technology advantage and market opportunity," stated Graham Robson, Xebec's Vice President for Asia/Pacific Operations. "We look forward to expanding our relationship with Golden Green and anticipate many similar orders in the months and years to come."
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.
Caution Concerning Forward-Looking Statements
Certain statements in this press release may constitute "forward-looking" statements within the meaning of applicable securities laws. This forward looking information includes, but is not limited to, the expectations and/or claims of management of Xebec with respect to information regarding the business, operations and financial condition of Xebec. Forward-looking information contained in this press release involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Xebec or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This list is not exhaustive of the factors that may affect forward-looking information contained in this press release. When used in this press release, such statements use such words as "anticipate", "believe", "plan", "estimate", "expect", "intend", "may", "will" and other similar terminology. These statements reflect current expectations regarding future events and operating performance and speak only as of the date of this presentation. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements.
For further information:
Chief Financial Officer