Sprintex wins $1m initial evaluation order from Netherlands based MV Techniek BV
An initial 20 custom compressors will be supplied for the customer’s ammonia reduction tech
Letters of intent for varying compressor capacities and five-year supply contract
Special Report: The growing interest in Sprintex’s range of products has led to its securing a $1m initial evaluation order from MV Techniek BV (Mest Water) to supply custom compressors.
Sprintex (ASX:SIX) had initially announced that it was collaborating with a Netherlands-based company for the development of a custom compressor to integrate with their ammonia reducing technology for agriculture in mid-June.
The company has claimed that its single-stage compressors are more than 15% more efficient than two-stage compressors while their design makes them both more energy dense and more reliable.
Their small size and energy efficiency makes them suitable for use in fuel cell, wastewater and industrial applications.
Long-term contract potential
SIX will design, manufacture and deliver 20 custom 1000kg/hr compressors to Mest Water, whose patented ammonia-reduction technology ZLD-UP is aimed at addressing the Dutch Government mandated limits on ammonia emissions from animal manure.
This technology revolutionises the treatment of manure, slurry, sludge, and wastewater by evaporating water from these inputs to leave a highly concentrated mixture that is then sterilised while its ammonia crystallisation unit converts ammonia gases into solid fertilisers.
However, previous prototypes of the ZLD-UP system, which farmers will use to process manure and receive clean water and fertiliser as outputs, were not energy efficient enough to be economically viable, a shortcoming that is expected to be addressed by the use of SIX’s energy efficient compressors.
Mest Water has already paid a 50% deposit of €310,000 ($500,000) for the initial compressors with the balance due upon their delivery and completion of a 90-day evaluation period.
It has also provided a letter of intent for the development of two additional compressors with varying capacities (500kg/hr and 1500kg/hr) once the evaluation period is completed as well as a letter of intent for five years of production should the evaluation prove successful.
EU countries with strict regulations (representing market size). Pic: Sprintex
This has the potential to deliver a constant stream of orders for SIX as Mest Water has an existing waitlist of over 1000 farmers, each of which will need one of the ZLD-UP systems with its compressor.
In the longer run, the company could have the opportunity to address the broader market in the EU, which has strict regulations.
“This agreement marks a pivotal step in expanding Sprintex’s reach within the European agricultural market, focusing on reducing ammonia emissions from livestock farming,” SIX managing director Jay Upton said.
“Partnering with Mest Water marks a significant milestone for Sprintex. Our compressors are crucial for enhancing the energy efficiency and economic viability of their technology.
“This collaboration unlocks substantial market opportunities in cattle and pig farms, particularly in regions with stringent ammonia emission standards. We are excited to contribute to both environmental sustainability and operational efficiency in the agricultural sector.
“This agreement is expected to generate record revenues for Sprintex during FY 2024/2025 and beyond.”
Mest Water director Arjan Mensink said SIX’s advanced compressors solved a big hurdle in making its ZLD-UP system more energy efficient.
“Their technology enables us to offer farmers a complete solution, significantly reducing ammonia emissions and converting manure into valuable products,” he added.
“We are looking forward to a long-term relationship with Sprintex well beyond 5 years, as well as throughout the European Union.”
This article was developed in collaboration with Sprintex, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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