The Sabien Technology Group Plc (LON: SNT) share price spiked 11.4% after revealing that it has signed a Memorandum of Understanding (MoU) with Irish Renewable Fuels Ltd (IRF) to establish a reprocessing facility in Ireland.
The facility will use the City Oil Field (COF) plastic to oil technology to produce light and ultra-pure fuel products, given that Sabien is the sole sales agent for the technology within the UK.
The last time we covered Sabien Technology, we highlighted its interest in striking a strategic partnership with Proton Technologies Canada Inc. to combine its hydrogen generation technology with its COF technology.
Sabien’s MoU with IRF will see the two companies utilise IRF’s IRF existing site and buildings in the Irish Midlands to install COF equipment. The two companies expect to sign a formal agreement within 12 months.
Sabien’s key role would be as the sole sales agent for COF technology in Ireland.
Investors cheered the announcement, as evidenced by the initial rally. However, the company’s shares later gave up all their gains and traded in negative territory at writing.
Richard Parris, Sabien Technology’s Executive Chairman, said: “Sabien is delivering on its strategy of building a portfolio of operations which, in combination, provide critical elements of the transition to a Green Economy. I am pleased that this MOU extends the geographic reach of our activity on behalf of COF to include the Republic of Ireland. The site proposed by IRF is within an established industrial complex that already has some key environmental permits in place. IRF inform me that they are well placed to secure feedstock supply in sufficient volume to power multiple COF lines. I am excited that this proposed development has the potential to create the first operating COF facility in Europe. This will provide early agency commission revenues to Sabien”.
Sabien shares have risen 7.8% since the year started and could be higher were it not for today’s decline. Instead, the shares had fallen 5.64% by the time of writing.
Unlike other companies in the waste-to-energy industry, Sabien does not have unique technology, instead choosing to license the technologies from other companies, which lowers its operating costs but puts it at risk of losing the licenses to competitors.
*This is not investment advice. Always do your due diligence before making investment decisions.
SNT share price.
SNT share price spiked 11.45% higher to trade at 32.60p, rising from Tuesday’s closing price of 29.25p.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .
Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading