REG - Sabien Technology - Update on US Waste Plastics to Oil Project

Sabien TechnologyAnnouncement

19/12/2024 07:00

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RNS Number : 6865Q  Sabien Technology Group PLC  19 December 2024

19 December 2024

Sabien Technology Group plc

("Sabien" or the "Company")

 

Update on US Waste Plastics to Oil Project

 

Sabien (AIM: SNT), a leading provider of energy reduction technologies, is
pleased to provide a further update on the City Oil Field ("COF")/b.grn Group
Limited ("b.grn") business opportunity in the US focused on generating
sustainable oil products from mixed, contaminated waste plastics with zero
emissions. This follows from the RNS announced on 17 October 2024.

 

Sabien can now announce that Phoenix, AZ, is the city where it is planned that
the first US deployment of COF technology will take place. This project was
approved at a formal City of Phoenix Council (the "City") meeting on 18
December 2025. The project was agenda item 67, "Resource Innovation Campus
(RIC) Agreements Authorization" Details of the Project can be found on page
200 of the included meeting reports at:

https://www.phoenix.gov/cityclerksite/City%20Council%20Meeting%20Files/12-18-24%20Formal%20Agenda%20-%20FINAL.pdf
(https://www.phoenix.gov/cityclerksite/City%20Council%20Meeting%20Files/12-18-24%20Formal%20Agenda%20-%20FINAL.pdf)
.

 

A.  Summary of City of Phoenix Project

 

Since May 2022, Phoenix Public Works and Community and Economic Development
departments have been collaborating with C40 Cities - Reinventing Cities
Competition. Reinventing Cities is an initiative led by C40 to stimulate
sustainable development and to celebrate innovative solutions to environmental
and urban challenges.

 

The City worked with C40 to run an international call for projects to develop
20 of the 40 acres at the Resource Innovation Campus (RIC). The RIC, and its
associated waste diversion program, was approved by Phoenix City Council in
2015 to be used for the call for projects. Located at 27th Avenue and Lower
Buckeye Road next to the City-owned transfer station, the RIC is dedicated to
the creation and growth of a circular economy that will fulfil the City's goal
of diverting waste from the landfill. The RIC will help Phoenix reap the
economic development benefits of attracting manufacturing processes and
conversion technologies that transform waste into resources and is an integral
part of achieving the 2050 Sustainability Goal of creating zero waste through
participation in the circular economy as outlined in the 2021 Phoenix Climate
Action Plan. In December 2023, a selection committee comprised of key City
leadership identified the winning team and proposal for the site.

 

The winning team and proposal are led by Krause Interior Architecture, Inc.
Sabien is a member of the Krause team.

 

The proposal includes development in two phases, the first of which includes a
short-term ground lease for two pilot programs to determine the viability of
the long-term concepts. Upon proof of viability, the second phase will include
an approximately 90,000 square foot building expected to include space for
research and development labs, designated incubation/acceleration space,
workforce training and development programs, and shared collaborative
workspaces, as well as land designated for resource clustering focused on
circular economy and by-product synergies (Project). To test emerging
technologies; kick start entrepreneurial activities; and complete the
necessary environmental assessments, staff proposes entering into agreements
in two phases. Should the Project move to Phase II, the total Project would be
located on approximately 20-acres at build out. The following key business
terms, and other terms and conditions will be incorporated into a Development
Agreement and other necessary agreements.

 

Phase I

·    Phase I will consist of a ground lease of not more than five years.

·    Phase I will allow for two research and development pilots that will
divert waste from landfill and generate revenue for Phase II. The first pilot
will be focused on processing municipal solid waste and difficult to recycle
plastics (#3, #4, #6, #7) and converting them to products such as bio char,
bio diesel fuels, and naphtha. The second pilot will be focused on processing
bio solids and sludge and converting them into products such as bio crude oil,
class A bio char, and liquid fertilizer. This second pilot is in conjunction
with the Water Services Department and will use feedstock from the City's
wastewater treatment plant. Both pilots' goals are to test new and emerging
technologies and the feasibility of creating high-value products from waste
streams to enable circularity, and help the City achieve its 2030 and 2050
waste diversion goals.

·    The two pilots will utilize up to 2.5 acres of the Special Operations
parcel located just east of the southeast corner of 35th Avenue and Elwood
Street within the RIC.

·    The lease terms will include a rent that meets fair market value
appraisal for the land site for a pilot, with credit towards rent provided for
the waste materials that are diverted from the landfill and the City.

 

Phase II

Phase II will include an amendment to the lease and execution of an operations
and maintenance agreement to enable development of the 20-acre site as
detailed in the winning proposal received under the C40 Reinventing Cities
Competition. Upon the Developer proving viability of Phase I and providing
verifiable documentation to the Community and Economic Development and Public
Works Directors of the financing entity and the terms of adequate financial
ability to complete construction of the Project on the full RIC Project Site,
the following terms will apply to Phase II:

 

·    The lease will be amended to extend the lease from five to up to 99
years and the land subject to the lease will be expanded from the original 2.5
acres to 20 acres.

·    Prior to executing the lease amendment, Developer shall submit to the
City a site plan and pre-application for development of the full Project Site.

·    The rent for Phase II lease area will be established with the initial
appraisal, considering a fair market value rate that may be reduced by the
direct costs to the Developer of the environmental assessments and
remediation, and public infrastructure work that is valuable to the City, and
completed by Developer in accordance with Title 34. Any infrastructure or
environmental work must be approved by the City in advance to be eligible for
credit. The annual rent may be reduced with credit towards rent provided by
the waste materials that are diverted from landfill and the City's other waste
streams, which provide a direct financial value to the City.

·    Developer will privately finance and construct the Project at their
sole upfront cost and expense.

·    Developer will construct a public park/open space to tie into the Rio
Reimagined development project. These public improvements may be creditable
towards the annual rent and will be constructed in accordance with Title 34.

·    Developer will construct an education room/tour space and gallery or
meeting space for public use.

·    Phase II must start construction within 24 months of entering into
the amended lease.

·    City will retain the right to approve tenant sub lessees at the
Project Site, which approval will not be unreasonably withheld.

 

Contract Term

The Phase I term is for five years. Phase II will amend the term up to a
maximum of 99 years.

 

B. City of Phoenix Letter of Intent

 

Sabien's non-consolidated associate company, b.grn Group Ltd, signed a
non-binding Letter of Intent on 18(th) December 2024 for leasing the land
referenced in Phases I and II above from the Developer appointed by the City
of Phoenix. This land will be used by b.grn to install a City Oil Field
Regenerated Green Oil plant. This LOI anticipates a final contract that is
contingent and co-terminous with a Master Agreement being negotiated between
the Krause team and the City of Phoenix.

 

Under this LOI, during Phase I, b.grn shall be provided with up to one acre of
temporary sublease space within the Special Operations Facility which b.grn
shall use to develop and test upcycling technologies to create high-value
products from plastics deemed difficult to recycle. The sublease shall be
subject to early termination if the outcome of the pilot phase is deemed
unacceptable to the City of Phoenix.

 

During Phase II, b.grn intends to sublease property estimated to be
approximately 2.74 acres. The sublease will be subject to the terms and
conditions of the Master Agreement and related development agreements between
Developer and the City.

 

Richard Parris, Executive Chairman of Sabien Technology Group, said: "The
approval of the RIC project by the City of Phoenix and b.grn signing of an LOI
with the chosen Developer is a significant step forward in our plans to deploy
COF technology into the US and UK. It is an endorsement of the need for waste
plastic recycling and the applicability of the technology Sabien is promoting.
It unlocks project funding discussions and negotiations with offtake partners.
The fact that the City of Phoenix owns the municipal waste stream within the
city and has a 50% 2030 waste diversion target from landfill ensures we will
have a reliable source of plastic feedstock for recycling. It moves Sabien
closer to its goal of generating profits from making the World a better,
cleaner place".

 For further Information, please contact:

 Sabien Technology Group plc                           +44 20 7993 3700

 Richard Parris, Executive Chairman                    investors@sabien.com

 Allenby Capital Limited (Nominated Adviser)

 John Depasquale / Nick Harriss / Vivek Bhardwaj       +44 203 328 5656

 Peterhouse Capital Limited (Broker)

 Duncan Vasey / Lucy Williams                          +44 207 469 0930

 

About Sabien Technology Group plc

Sabien Technology Group plc provides energy reduction solutions designed to
help businesses achieve their sustainability goals, with a particular focus on
reducing energy consumption and carbon emissions.

 

The Sabien Technology Group plc holds the Green Economy Mark from the London
Stock Exchange, recognising companies generating over 50% of their revenues
from sustainable products and services.

 

Website: www.sabien.com (http://www.sabien.com/)

 

 

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