On Wednesday, Sabien Technology Group (LON: SNT) announced an agreement with City Oil Field Incorporated of South Korea (COF), sending its share price surging higher.Â
The agreement will see Sabien act as an exclusive sales agent for COF in the UK, with non-exclusive rights in other territories, for an initial period of 1 year.Â
Sabien expects a longer-term relationship, with future sales targets already agreed in outline.
COF's technology and techniques focus on producing light and ultra-pure fuel products from low-temperature processing of end-of-life plastics.
AIM-listed firm, Sabien, said it expects the deal to be a precursor to greater involvement in the waste-to-energy sector, particularly in the UK. The company will work with partners to develop recycling facilities in the UK and the US, utilising COF's technology.
The agreement allows Sabien to benefit financially from the development of facilities through commission on sales of COF's technology to third parties and to generate revenue from expanding its own network.
Once technology verification is obtained from Cambridge University, Sabien will participate in more commercial partnerships to construct, operate and fund COF-powered recycling plants.
Richard Parris, Executive Chairman of Sabien, stated: “The imperative to reduce both UK waste exports and the use of domestic landfill has grown over the last decade. It is encouraging to note that the means of achieving these aims are now developing at equivalent pace. The Board of Sabien is pleased to partner with City Oil Field in bringing its innovative process to the UK and US.”
Sabien Technology's share price s up 37% so far on Wednesday, at 25.35p. However, it is down over 55% for the year to date.
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