Pacific Green Signs Agreement With Union Maritime
Pacific Green Technologies Marine Limited Signs Heads Of Agreement With Union Maritime Limited To Install The Envi-Marine™ Emissions Control System On The Chemical Tanker "Westminster"
SAN JOSE, CA / ACCESSWIRE / September 9, 2016 / Pacific Green Technologies Marine Limited, ("PGTM") a subsidiary of Pacific Green Technologies Inc. (OTCQB: PGTK) is pleased to announce it has entered into a Heads of Agreement for the sale of an ENVI-Marine TM Emissions Control System ("System") to Union Maritime Limited and its subsidiary UML Westminster Limited ("Union"), a UK based shipping company for its ship "Westminster", a 13,000 dwt chemical tanker.
It is intended that the System will be manufactured by POWERCHINA SPEM and installed at a shipyard yet to be specified but anticipated to be in Turkey or Dubai in the first quarter of 2017. The System will be supplied for the main engine of the vessel at a sale price of US$1,995,000 paid under the terms of an energy management contract. the System will remove sulphur dioxide from exhaust gas emissions to a level that meets the regulatory requirements of the International Maritime Organization to operate in SECAs.
The Sulphur Emissions Control Areas (SECA) are a group of international areas based in various locations around the world that limit the airborne sulphur emissions from ships. These areas currently include the Baltic Sea, North Sea, the North America ECA which includes most of the US and Canadian coastline and the US Caribbean. Any vessel operating in any of these waters must comply with these emissions restrictions.
The System's effective scrubbing of regulated emissions enables Union Maritime to achieve cost savings by allowing the continued use of lower cost heavy fuel oil when operating in Sulphur Emission Control Areas (SECA) instead of switching to high cost low sulphur fuel. It is anticipated that savings on this type of vessel would be approximately US$2,700 per day when operating in a SECA.
The summary terms of the Heads of Agreement are as follows:
1. Union will enter into a binding Energy Management Lease Agreement within 21 days. UML will guarantee that the Westminster will operate for a minimum of 145 days per annum in SECA for the duration of the Agreement.
2. Union will pay the full cost savings that the System generates to PGTM until PGTM has received US$1,995,000.
3. Union agrees an intent to purchase up to a further ten Systems from PGTM subject to the System removing sufficient pollutants to meet SECA environmental regulations within eighteen months.
Neil Carmichael, Chief Executive of PGT and Chairman of Pacific Green Technologies Marine Ltd, commented: "This sale to the Union vessel is another substantial milestone for PGT's growth."
"Our patented Envi-System's technology was originally conceived for the shipping industry so this Agreement is a natural progression for our company once our JV was established with POWERCHINA SPEM and our order for the first stationary System in China."
We are very confident of expanding our client base quickly in the marine sector and envisage that the Marine Division will be a substantial part of the group's overall growth and revenue in the future."
Laurent Cadji, Managing Director of Union Maritime Limited added:
"Union Maritime takes its environmental responsibilities extremely seriously and we are determined to comply with all current and future controls on vessel emissions. Working with PGT provides us with an innovative solution to the requirements of operating our vessel within a SECA and we look forward to a fruitful partnership."
About Pacific Green Technologies, Inc.
Pacific Green Technologies Inc. is focused on addressing the world's need for cleaner and more sustainable energy. The company's strategy is to build through organic development and acquisition, a portfolio of patented competitive cutting edge technologies designed to meet increasingly stringent environmental standards.
For more information, visit PGT's website:
Neil Carmichael, President and Director
Pacific Green Technologies
T: +1 (408) 538-3373
About Union Maritime
Union Maritime Limited (UML) is one of the largest UK-based independent ship owner/operators with a fleet of 31 product/chemical tankers and two bulk carriers. Operating globally but with a developed expertise and focus on West Africa, UML enjoys an established reputation for carrying cargoes safely and efficiently whilst delivering clear and honest information to its clients and stakeholders in complex trading environments.
The UML fleet continues to grow and, to date, has moved millions of tonnes of bulk commodities for global, blue-chip oil companies, refiners and traders.
Established in 2006 from the union of two successful commodities and industrial businesses based in Nigeria, UML aspires to become the logistics partner of choice for the world's leading commodity traders.
Mike Elsom (Navigate PR London)
+44 (0) 203 326 8464 or email
Notice Regarding Forward-Looking Statements:
This news release contains "forward-looking statements," as that term is defined in Section 27A of the United States Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Statements in this news release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, that PGT's emission control system has significant potential to be a market leader in China.
Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, general economic conditions, and the continuation of the JV with POWERCHINA SPEM resulting in definitive agreements. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance that such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
SOURCE: Pacific Green Technologies, Inc.
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