Amsterdam Project Update – 5 October 2018
The board of Integrated Green Energy Solutions Ltd (“IGES” or “the Company”) are pleased to provide the following update regarding its Amsterdam facility.
Update on Module Construction
Module construction for the Amsterdam plant continues to proceed well with the first modules ready for shipping by the end of October.
The module build is being undertaken under a full quality assurance system that has been specifically adapted to ensure that the modules meet European regulation and will be CE compliant. CE compliance means the meeting of all health, safety, and environmental protection standards on arrival in Europe.
As part of the module build a full technique and procedure capture program is active ensuring that IGES is able to outsource the module construction if and when this proves to be a more commercially beneficial option.
Update on Site Construction
Onsite construction at the Amsterdam project is progressing according to schedule with the focus currently on civil works. Some final piles are currently being installed with all piling to be completed by the week ending 12 October 2018.
IGES’s builder, Ijbouw B.V., is now undertaking preliminary work relating to the installation of concrete beams, that will support the concrete slab.
Following completion of the above-mentioned preparatory work, the production building concrete slab will be poured in November. Currently, structural steel is being fabricated in preparation for erection of the production building on this slab, due for completion in January 2019.
The tank pit foundation will be ready for delivery of the fuel storage tanks by the end of November, with all ancillary equipment due to be installed by the end of December.
An electric substation is currently under construction which will provide the facility with its high voltage power requirements from December.
Fuel Offtake
The fuel produced by the plant is 10 PPM ULSD. That is, 10 Parts Per Million Ultra Low Sulphur Diesel.
This fuel will be sold under an offtake agreement to FinCo Supply and Trading B.V. (“FinCo”), who will utilise the fuel for marine shipping.
The fuel produced utilising the IGES technology has low sulphur content as well as emitting lower CO2 emissions during the production process than traditional fuel production methodologies. IGES’s patented technology has been independently verified as producing fuels that reduce the carbon footprint by up to 38% as compared to conventional methods. The utilisation of the fuel produced by the IGES facility will directly contribute to FinCo’s stated drive towards sustainability and a reduction in CO2 emissions.
Amsterdam Project Update – 8 August 2018
Integrated Green Energy Solutions Ltd (“IGES” or “the Company”) is in the process of constructing a waste plastic to fuel facility in Amsterdam. This project has full environmental approval to operate when the site is completed.
The initial site will be built with the capacity of 100 tonnes per day (“TPD”) which will produce 35 million litres of fuel that has been sold at a price that will produce an EBITDA margin of 30 cents per litre. Phase two of plant capacity was scheduled to increase to 200 TPD producing 70 million litres per annum at a margin of 30 cent per litre. The final phase of growth was planned to increase on site total capacity to 400TPD producing 140 million litres at a margin of 30 cents per litre. This final phase was forecasted to occur within 2 years of initial operations.
Due to positive discussions with the local government and environmental regulators, IGES has made the decision to initiate additional structural design and foundation steps in the current construction phase to allow for the increase in capacity of the site to 400TPD. This proactive approach will allow the Company to avoid the necessary, yet expensive and disruptive retrospective changes that would need to be made to expand the site capacity after the 100TPD site is operational.
Foundation and structural design changes to meet the proposed expansion to 400TPD:
- design the emissions stack with the capability to be increased to 50 metres to meet the environmental approval requirements for a 200TPD and greater plant;
- the diesel and petrol tank farm capacity to be increased from 300 tonnes of fuel to 1,200 tonnes of fuel;
- increase plastic feed stock processing silos from 300 tonnes to 600 tonnes;
- increase the feedstock processing capacity of the facility to 30 tonnes per hour.
Implicit in the above enhancements has been a redesign of the supporting piling and additional piles to those installed in the first phase, completed in June 2018. This includes compliance with regulations relating to:
- the Netherlands lying on or below sea level, which requires substantial piling density (+/- 1 pile every 3-5m²);
- seismographic testing of the subterranean rock shelf;
- detailed design signed off by structural engineers and submitted to the permitting authority; and
- redesign of the foundation slab and structural steel frame and associated statutory approvals.
The additional piling, design and statutory approval process associated with this expanded capacity to 400 TPD will require the existing operational date of the 100TPD facility being moved from November 2018 to first quarter of 2019. The board considers the significant savings in time and costs to be gained by undertaking the 400 TPD capacity site works now to be in the best interests of the project and shareholders. This approach fast tracks the return on investment at Amsterdam by increasing the facility output more quickly and returning enhanced cash flows to the Company on an accelerated basis.
Amsterdam Project Update – Construction on Track – 20 June 2018
The directors of Integrated Green Energy Solutions Ltd (“IGES”, or “the Company”) are pleased to advise that construction of the waste plastic to fuel facility is progressing as planned, with a ceremony held on Friday 15 June 2018 to officially open the project.
In attendance were:
- René Leegte, lobbyist, former member of parliament (Liberal party, VVD).
- Stuart Clark, Managing Director IGES
- Roon van Maanen, director of circular and renewable Industry at the Port of Amsterdam
- Dilan Yesilgöz-Zegerius, Member of Dutch Parliament (Liberal party, VVD)
- Geert Bergsma, Manager of Life Cycle Analyses at CE Delft, independent research institute.
- Paul Dickson, Chairman of the board IGES
- Paul Harkema, Managing Director IGES Amsterdam
- Floris Geeris, Managing Director IGES Amsterdam
Roon van Maanen, Head of Circular & Renewable Industry at Port of Amsterdam, stated that “by creating a new product from an otherwise problematic waste product, (IGES) fits perfectly within the mission of Port of Amsterdam to facilitate energy transition as well as transition to a circular economy” and that the IGES project “introduces innovative and badly needed technology that will enable us to make use of a currently non-recyclable flow of waste in a manner that makes perfect sense.”
In addition to the work currently being done on the site, IGES is well progressed in the completion of the waste plastic to fuel conversion modules required for the project. IGES will initially construct two modules, with a combined annual output forecast to be over 35 million litres in fuel at a margin of $0.30 per litre produced. In due course, IGES plans to double to site’s capacity to 200 tonnes per day with the addition of a further two modules. Each pair of modules will incorporate IGES’s patented technology acquired as part of its recent relisting on the ASX.
IGES’s patented technology has been independently verified as producing fuels that reduce the carbon footprint up to 38% compared to conventional methods. This process will directly contribute to the Port of Amsterdam’s stated commitment to sustainability and its drive to incorporate the circular economy by identifying and promoting alternative energy sources from waste products that result in a reduction in greenhouse gas emissions.
This technology has the following advantages:
- Limited scale-up risk as larger plants are simply multiple modules;
- Allows the majority of the plant to be built indoors with minimal site works, reducing potential site-based delays;
- Allows fabrication and engineering companies to work on different sections of the plant independently minimising intellectual property leakage risk; and
- Assembly on site is measured in days rather than months.
The board of directors look forward to providing you with further updates as construction of the Amsterdam facility progresses.
Amsterdam Project Update – Construction Begins – 23 April 2018
Further to the announcement on 8 March 2018, the directors of Integrated Green Energy Solutions Ltd (“IGES”) are pleased to advise that the initial site work phase on the Amsterdam project has been completed and piling is now underway. The below photo shows the first pile being driven into the ground until it hits bedrock. There will be in excess of 780 piles driven into the site over the next 8 weeks. This key stage creates the foundation for the Amsterdam facility superstructure and is expected to be completed in June 2018.
Construction of the Amsterdam project is due to conclude and liquid fuels; Naptha, Marine Fuel and Marine Diesel Oil (MDO) is scheduled to be produced by the end of 2018. The board of directors look forward to providing you with further updates as construction of the Amsterdam facility progresses.
Amsterdam Site Work Begins – 8 March 2018
Further to the announcements on 30 January 2018 and 19 February 2018, the directors of Integrated Green Energy Solutions Ltd (“IGES”) are pleased to advise that site work has begun on the Amsterdam project. The below photo shows the work being done to level the land as a first phase of the piling process.
The IGES project team are currently working to finalise all pre-construction processes in readiness for the completion of the piling. The entire construction project is due to conclude and liquid fuels (Naptha, Marine Fuel and Marine Diesel Oil) is scheduled to be produced by the end of 2018.
IGES is continuing to progress the construction of the Amsterdam site with the major emphasis now being the progression of the piling as well as planning the critical path for all subsequent stages of construction.
Off-take Agreement Executed for Amsterdam Output – 19 February 2018
The directors of Integrated Green Energy Solutions Ltd (“IGES”) are pleased to advise that they have signed a binding 5-year agreement for the purchase of all liquid fuels (Naptha, Marine Fuel and Marine Diesel Oil) produced from the IGES Amsterdam facility. The agreement is signed with FinCo Supply and Trading BV (“FinCo”).
This contract has been entered into following the completion of notarisation of the purchase of the
Amsterdam entity, Bin 2 Barrel Amsterdam BV.
FinCo is a well-established company in the business of the storage, trading and distribution of oil and oil-related products in Northwest Europe. The company represents a good match for IGES as it is also focused on further reduction of CO2 emissions and views safety and sustainability as key imperatives. FinCo’s objective is to further expand their activities in the Northwest European downstream energy market.
Further information regarding FinCo is available at: https://www.fincofuel.com.
Meanwhile, IGES is continuing to progress the construction of the Amsterdam site with the major emphasis now being the progression of the piling as well as planning the critical path for all subsequent stages of construction.
Concurrently, IGES continues to develop the three sites in the UK and the Camden, Indiana USA site.
Purchase of Amsterdam Company with EPA Approval to Operate – 30 January 2018
- IGES Purchases Amsterdam Company with EPA Approval to Operate
The directors of Integrated Green Energy Solutions Ltd (“IGES” or “the Company”) are pleased to announce the purchase of an Amsterdam based entity, Bin 2 Barrel Amsterdam B.V. This purchase comes with a site in Amsterdam that has a fully approved and sanctioned Environmental Approval Permit to operate a waste plastic to liquid fuels (Naptha, Marine Fuel and Marine Diesel Oil) permit. This strategic purchase will allow IGES to produce liquid fuels (Naptha, Marine Fuel and Marine Diesel Oil).
- Environmental Approval and Construction Development
With the environmental approval in place for the Amsterdam plant, we are able to commence construction immediately. The first step in construction is to lay foundations for the site by undertaking piling activities at the site. This piling project has been quoted to cost over AUD$1.5 million and the assignment has been awarded to Stout Van Herk Group – a Dutch construction company, established in 1908 that is active in the field of new construction, renovation and maintenance with a strong focus on sustainability.
- Funding
Construction of the Amsterdam site will be funded via the loan contract in place with Structured Growth Capital. The loan under this contract has a 15 year term and an interest rate of 8.5%.
- Terms of the Purchase of Amsterdam Entity
The terms of the acquisition of Amsterdam entity operating in the Plastics to Fuel space have been finalised and completion was subject to the re-listing of IGES and completion of the BSA. Now that these milestones have been passed, the final phase of the acquisition, which is notarisation of the contract, can be completed. That is the 90% ownership of the company, Bin 2 Barrel Amsterdam B.V., by Integrated Green Energy Singapore Ltd, a 100% subsidiary of Integrated Green Energy Solutions Ltd, will be notarised in both Australia and Amsterdam in a matter of days.
- Amsterdam Site Location
The address of the site is located in Petroleumhavenweg, Amsterdam.
Below is a map showing the location of the site as well as photos of the site. As part of the development in Amsterdam we have two new employees Paul Harkema and Floris Geeris.
- Amsterdam Entity Name
The process to change the name of the Amsterdam entity had begun. The name will be changed to “Integrated Green Energy Amsterdam B.V.”.
- Positive Impact of Re-Listing on Operations and Implementation of Strategy
With the relisting of the Company also comes the ability to act on the strategies, plans and negotiations communicated to the market during completion of the Business Sale Agreement (“BSA”).
Specifically, the relisting immediately results in:
- The completion of the BSA with Integrated Green Energy Ltd
- Unqualified right of ownership of all software under the BSA
- The formal change of primary activity of the company
- Completion of the purchase of the Netherlands entity
- Commencement of construction of the company’s first Plastics to Fuel facility in Amsterdam
- Activation of the environmental approval obtained in the Netherlands
- Other Projects
The progress of development of the three sites in the United Kingdom, the site in Camden Indiana, USA, as well as further international business development, continues. The Camden Indiana site will include revenue generated from the construction of CDMs. Further information on this will be provided as the site construction commences.
However, the immediate, major focus of the Company’s resources is the construction of the Amsterdam site.