CHO POWER: FAR Secured at Morcenx
EUROPLASMA (ALEUP, ISIN FR0000044810) announces the successful delivery of a critical milestone, having secured the FAR of the CHO Morcenx advanced gasification plant.
Commenting on the FAR tests completion, Jean-Eric Petit, CEO, declared:
"Securing FAR at Morcenx constitutes a major milestone for the Europlasma group, concluding the validation ofallthefundamental parameters ofCHO Power's pioneering technology. The installation of additional engines, combined with implementation of identified operational improvements, will optimize the process and progressively associate economic performance with power output.
I commend the efforts and the tenacity of the CHO Power and CHOPEX teams during this difficult, often rocky, journey. We remain absolutely focused on the CHO Morcenx progress, as well as on the fine-tuning and deployment of future similar plants, which will all benefit from the unique experience and expertise gained at Morcenx."
1. What is FAR Protocol?
As a reminder, execution of the FAR protocol started last summer. Amongst the various tests having been performed, the plant's ability to run for 15 days, delivering maximum capacity set points, and in particular the delivery of energy in the syngas corresponding to production of 10MW+ of renewable electricity - once additional engines are installed - was demonstrated.
The final test, provisionally delivering the plant, consisted in performing an endurance test during which renewable electricity (over 5MWe) was produced through both turbine and engines, a world first on a waste gasification plant.
2. What does it mean for CHO Power?
All the performance and endurance tests listed in the FAR protocol, innovative and highly demanding, have now been successfully performed. They unequivocally validate all the fundamental parameters of the CHO Power technology at commercial scale and reinforce its economic potential.
Several opportunities to fine-tune the process have been further identified, with a positive impact on its economic or environmental performance, some of which have actually already been implemented.
More importantly in the short-term, FAR will allow, in the context of the plant ramp-up, to start stable production of renewable electricity which will generate revenues for CHO Power and reduce cash consumption proportionally to power output.
3. What are the next steps?
Remaining Engines Purchase and Ramp up
CHO Morcenx will finally reach nominal power output (10MWe+) once the additional engines are installed. Having now secured FAR, the optimization study on the engine plant configuration, performed by CHO Power will be submitted to CHO Morcenx very shortly, to place the order for the additional engines.
From FAR to FA: What does lifting of reserves mean?
Securing the FA will require CHO Power to lift the reserves, which fall into 2 categories:
Development of Future Projects
FAR also permits CHO Power to enter fully into the next stage of development for future projects, including CHO Tiper, CHO Locminé (Building Permit was granted November 26, 2015) and CHO Brocéliande.
Note: precisions (in French) regarding evolution of key milestones for delivery of the CHO Morcenx plant are available on the company's website (section Shareholders & Investors/documentation/presentations).
About EUROPLASMA
At the heart of environmental issues, EUROPLASMA designs and develops innovative plasma solutions for renewable energy generation and hazardous waste recovery, as well as related applications for multi-sector companies wishing to reduce their environmental footprint.
EUROPLASMA is listed on Alternext (FR0000044810-ALEUP). For more information: http://www.europlasma.com
This release contains provisional information including risks and uncertainties. Actual results of the company may differ materially from those indicated in the forward-looking information because of different risks factors described in the company's "Document de Reference".
Presscontact
AnneBordères - Communication Manager
Tel: + 33-(0)556-49- 000
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