REG - Scirocco Energy PLC - Exclusivity with Sustainability Tech Provider SEM

Scirocco EnergyAnnouncement

09/12/2021 07:00

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RNS Number : 0505V  Scirocco Energy PLC  09 December 2021

09 December 2021

Scirocco Energy plc

("Scirocco Energy" or "the Company")

SCIROCCO ENERGY UK LIMITED ("SEUK") signs H(2)OPE System technology
exclusivity with SEM Energy Limited ("SEM")

Scirocco Energy (AIM: SCIR), the AIM investing company targeting attractive
assets within the European sustainable energy and circular economy markets, is
pleased to announce that, its subsidiary, SEUK has signed an exclusivity
agreement with leading sustainability technology provider, SEM. This
exclusivity will be for the benefit of SEUK, its affiliates and its investee
company Energy Acquisitions Group Limited ("EAG").

SEM (https://sem.world/), is a leading developer of technologies within the
circular economy sector. It is anticipated that SEM will provide EAG with
digestate management and nutrient recovery technology, known as H(2)OPE
System.

The system processes digestate, a by-product of the biogas process, into
nutrient dense, high-quality fertiliser, nutritionally balanced growth media
and a sustainable peat substitute which can be used within a range of growing
environments across the sector. It also produces re-usable water, and
significantly reduces CO(2) emissions compared to traditional practices.
Trials are also taking place for the use of the material to make biodegradable
plant pots for nurseries and growers, removing the reliance on single use
plastic.

Key terms of the agreement:

·    SEM will exclusively supply to SEUK, its Affiliates, EAG (the
"Scirocco Parties"), the H(2)OPE System for the application to digestate
generated from AD plants within the UK and Ireland;

·    The exclusive period runs until end June 2023, unless extended by the
parties in accordance with the agreement;

·    SEUK will use reasonable endeavours to purchase or procure that the
Scirocco Parties purchase a minimum of five units of the H(2)OPE System within
the exclusivity period;

·    If Scirocco Parties do not meet certain order requirements during the
exclusivity period, the exclusivity may fall away, but Scirocco Parties are
still able to order units of the H(2)OPE System from SEM during the term on a
non-exclusive basis.

EAG intends to apply the technology to its operating plant at Greenan, as well
as working with other owners of other operational AD plants to assess the
potential benefits of funding the installation of a 'bolt-on' nutrient
recovery system on a merchant basis.

The addition of the H(2)OPE System technology to existing AD plants has the
potential to deliver an additional revenue stream through the creation of high
value co-product, depending on the level of refinement required for a specific
market sector while simultaneously reducing the carbon intensity of the
process.

Commenting on the agreement, Scirocco CEO Tom Reynolds said:

"This represents the next step in our investment strategy supporting
investment in 'Circular' within the agricultural sector, alongside our
existing investment in EAG.  The application of this kind of technology will
help optimise the operational and environmental performance of our current and
expected future AD plants, as well as providing a new revenue stream that can
be scaled in line with our portfolio. The exclusive nature of the agreement
provides Scirocco Energy and its investee company, EAG, with a valuable head
start in deploying a value adding technology to its asset base as it grows."

Chris Kerr, MD of EAG added:

"Firstly, this technology enables EAG to implement its active optimisation
programme for its current assets, driving value through each of the
businesses, and also solves the issue of digestate spreading to land, which in
some cases is already saturated with nutrients. Recovery of nutrients from the
biogas process is the perfect opportunity to provide growers and their
customers in the fresh produce sector with a sustainable and effective
alternative to fossil fuel derived fertilisers.

"Reducing carbon through the food chain is something we have been focussed on
for a number of years now, and we believe the end-to-end nature of the SEM
technology will provide the entire fresh produce sector in the UK and Ireland
the opportunity to introduce a genuinely circular economy into their business
models."

John Jones, CEO and Founder of SEM Ltd added:

"Our engagement with EAG and Scirocco Energy is fantastic news for SEM. Their
understanding of what the market needs are, and exactly where our technology
fits within that space has made the deal straightforward. It has been really
exciting working up the plans for the new plants at which the technology is
expected to be deployed throughout 2022.

"At SEM we have a vision of a waste-free circular economy both now and in the
future, securing our planet's health and wealth for generations to come. Our
H(2)OPE technology is set to have a hugely positive impact on the environment,
as well as on the agriculture industry, by maximising the conversion of waste
co-products into valuable by-products, while significantly cutting CO(2)
emissions.

"Both EAG and Scirocco Energy share this vision - a common alignment which
will ensure our strong future working relationship gets off to the best
possible start. We can't wait to see where the next part of the journey takes
us all."

 

For further information:

 Scirocco Energy plc                                                              +44 (0) 20 7466 5000

 Tom Reynolds, CEO

 Doug Rycroft, COO

 Strand Hanson Limited, Nominated Adviser                                         +44 (0) 20 7409 3494

 Ritchie Balmer / James Spinney / Rory Murphy

 WH Ireland Limited, Broker                                                       +44 (0) 207 220 1666

 Harry Ansell / Katy Mitchell

 Buchanan, Financial PR                                                           +44 (0) 20 7466 5000

 Ben Romney / Jon Krinks / James Husband

 About SEM

 Fuelled by a belief that there is a better way to repurpose 'waste' and
 recover resources and nutrients where possible, we have applied our experience
 and engineering know-how to develop a range of novel, patented technologies
 that empower businesses to reduce waste, manage co-products and, where
 possible, generate by-products to add value to their waste streams.

 For more information visit https://sem.world (https://sem.world)

 

 

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