BORDEAUX, France, June 24, 2014 /PRNewswire/ --
Listing Suspension
Maintained
Successful Preliminary Take-Over of the CHO Morcenx advanced
gasification plant
Since starting up the renewable energy plant in February 2014, several test campaigns have been
performed, each one allowing the operator to improve his knowledge
of the process, to fine-tune the operational parameters, and to
improve the plant performance.
The successful performance of endurance tests carried out
between June 9 and June 13 allowed
the company to secure the Preliminary take over (Preliminary TOD)
certificate from the client. During this period, 372 tons of fuel
(waste and biomass) were processed and 266 MWh of renewable
electricity were delivered to the grid.
As a consequence to delivering this significant milestone, the
client CHO Morcenx paid the total sums due upon TOD under the
contract. And the participation of CHO Power, wholly owned
subsidiary of Europlasma, in CHO Morcenx will be increased from 25%
to 35% through exercise of related warrants.
The process is validated
This preliminary TOD is the tangible evidence of the validation
of the innovative process developed by Europlasma. During these
endurance tests, all the operating parameters initially set in the
contract for the TOD have been met or exceeded, except the average
power output, slightly superior to 3MWe, which remains at this
stage in the test program below original expectations.
The reasons for the low electrical output are now identified and
solutions are known. These reasons are of two types: the fragility
of various auxiliaries, generating frequent stoppages, and the
sizing of a few items of equipment, designed and built before the
change of gasifier in 2013.
The execution of corrective measures will require additional
investment, c. €1 million, and time: some will be completed in a
few weeks, others may take a few months depending upon the delivery
lead time from our suppliers.
Upon execution of the initial improvements, most probably before
the end of July, a new performance test will be performed and
results will be promptly communicated to the market.
Jean-Eric Petit declared:
"I congratulate the CHO Power and CHOPEX teams for
successfully validating the CHO Power technology. Thanks to
efforts made over these last few months, the sources of improvement
of this industrial prototype plant and the identification of
relevant solutions have been established. I also thank all of our
shareholders and partners for their patience, as I am well aware
that the delay of the preliminary take over was painful for
all."
Europlasma's cash situation remains fragile, trading remains
suspended
The support from the French Authorities, from our industrial
partners, and from our financial partners, as outlined in the press
release dated 8 April 2014, has been
decisive, since it enabled the Group to validate the CHO Power
technology. The financial partners in particular have granted the
Group a €2.8 million loan in two tranches. The last one, of €1.1
million, being conditional upon securing the TOD, has just been
paid.
Nevertheless, the Group's cash situation is again challenging,
and the investments required to execute the technical improvements,
combined with the extended duration of the ramp-up period
(currently being assessed), will inevitably increase the group's
working capital requirements in the next few months. These issues
will be addressed next week in a specific release.
With uncertainties around the Group's cash situation, and in the
interest of shareholders, stock trading remains suspended until
publication of the Auditor's report on the 2013 Accounts, expected
by mid-July 2014.
About Europlasma
Europlasma is a French Group operating in the clean technologies
and renewable energy production industries. Founded in 1992 to
apply its proprietary plasma torch technology to hazardous waste
destruction, it is now built on the following three business
units:
- Torches & Processes - Europlasma is a world-wide
supplier of plasma heating systems and related applications
- Hazardous Waste - Inertam is the global specialist in
the destruction and recycling of asbestos and hazardous waste
- Renewable Energies - CHO Power is a producer of
electricity from waste and biomass gasification.
http://www.europlasma.com [Alternext - NYSE Euronext Paris
- Mnemo : ALEUP - Isin : FR0000044810]
Press and investor contacts
Jean-Eric PETIT, Chief Executive Officer
Estelle MOTHAY, Chief Financial Officer
Anne BORDERES, Press & Shareholders contact / Tel:
+33-556-497-000
contactbourse@europlasma.com