b.grn update: Addressing the Question
5 May 2022
b.grn Group Ltd
(“b.grn” or the “Company”)
b.grn update: Addressing the Question
London, 5th May 2022. b.grn Group Ltd, provides the following update to its progress in developing the first commercially viable operation in this market.
b.grn is a Special Purpose Vehicle (SPV) in which Sabien Technology Group Limited (“Sabien”) has a 33% shareholding and Parris Group owns 67%. b.grn was formed to build a large-scale UK processing capability that utilises technology from City Oil Field Inc. (“COF”), of South Korea for which Sabien holds the exclusive UK sales agency. Under this agreement, Sabien will receive a commission of 10% of the selling price of all products sold on behalf of COF to the SPV.
b.grn’s strategy is to locate processing capacity in geo-economically relevant sites, initially across the UK, from which it will provide a meaningful contribution to the local production of fuel oil without the need for primary hydrocarbon imports.
Against this strategy, b.grn has made the following progress:
- The Company has identified two well-located, available sites on which to operate. In both cases, the sites are close to deep-water ports and road/rail infrastructure. One site is in the Humberside Freeport zone (code name Project Coffee) and the other is located in Holyhead, Wales (code name Project Panad), in an area pending Freeport status. Work is progressing to secure either or both of these sites subject to commercial negotiations, site investigations in Humberside, confirmation of Freeport status in Holyhead, and the appropriate capitalisation of the SPV:
- These locations are in addition to the Northampton site highlighted in the announcement of 22 December 2021. The Northampton site remains under consideration. However, in light of the situation created by the Russian invasion of Ukraine, b.grn has accelerated its development of the site portfolio to reflect the emerging need for larger locations.
- It is in negotiations with COF for a greater integration between the companies which could include, but is not limited to, the development of manufacturing facilities in European markets and financial investment from Korean investors in support of the initial capital requirements of b.grn:
- b.grn is in talks with a range of European investors seeking to back an initial funding round, additional to COF, of £50 million via a combination of equity and debt instruments.
b.grn is working constructively across a range of components, vital to its strategy. It has identified its initial sites. It has reinforced, further, its commercial relationship with the manufacturer of the core technology. It has entered into negotiations with financial investors to support the development of its strategy.
Commenting on the update, Richard Parris of b.grn, said:
“We are accelerating the development of b.grn to reflect the emerging geo-political and economic landscape. Fuel sources are more important than at any time in recent experience. This has created an unprecedented combination of national and local governments, waste management and fuel customers, and land vendors, all seeking a solution. In my opinion, b.grn is that solution. We have been impressed with the speed and level at which we have engaged with interested parties, and we look forward to taking the Company to the next stage: being on site and producing fuel.”
“Yr ydym yn cyflymu y datblygiad o b.grn i adlewyrchu y dirwedd wleidyddol a geo-wleidyddol sy’n dod i’r amlwg. Mae ffynonellau tanwydd yn fwy pwysig nac ar unrhyw bryd mewn profiad diweddar. Mae hwn wedi creu cyfuniad digynsail o lywodraethau cenedlaethol a lleol, rheoli gwastraff, cwsmeriaid tanwydd a gwerthwyr tir, i gyd yn chwilio am atebion. Yr ateb yn fy marn i, yw b.grn. Mae’r cyflymder a’r lefel yr ydym wedi gallu ymgysylltu â partion â diddordeb yn drawiadol ac yr ydym yn edrych ymlaen i fynd â’r cwmni i’r cam nesaf: bod ar safle a cynhyrchu tanwydd.”
Caption: Sabien Executive Chairman, Richard Parris, meets with Member of Parliament for Ynys Mȏn, Virginia Crosbie, at the Holyhead site to promote Project Panad and to campaign for Holyhead to be granted Freeport status. This is critical to b.grn’s impending decision to locate a +£50m facility in Anglesey.
|b.grn Group Ltd Ed Sutcliffe Chief Financial Officerfirstname.lastname@example.org|
|Scott Fulton (Investor Relations)||+44(0) 7788 144993|