Posts Tagged ‘Green technology’

Note: The original C.E.S.I. Arc Aroma Investment Call is found here


Today, C.E.S.I. (an Arc Aroma Pure shareholder) was thrilled by the Arc Aroma Pure February 13 Press release (herein translated and slightly edited by C.E.S.I.):

Arc Aroma Pure AB (publ.) is very active in the market and in different projects. We have chosen to release this memo to live up to our promise to be transparent and to keep our shareholders informed.

bioCEPT® deployed in Jordberga

Company bioCEPT® is now installed and commissioned at the biogas plant in Jordberga outside Trelleborg. The preliminary results are very promising and as expected. Our bioCEPT® in Jordberga will be an important demonstration facility now when we begin to receive both Swedish and foreign delegations, who expressed their interest to see the CEPT® plant in operation. The biogas plant in Jordberga is the largest and most modern plant for the production of biogas in Sweden.

bioCEPT® registered trademark

Now, the Patent Office has announced that bioCEPT® is a registered trademark. The registration is an important step in the company’s market strategy.

Marketing activities

Arc Aroma Pure representatives have visited prospective customers and partners in different market segments and in several countries. This includes visits to China, Thailand, India, Spain and the United States. We note that the hospitality is always very positive and that interest is also very large.

Successful tests in the olive oil project

Recently, the company installed a CEPT® generator, treatment chamber included, in one of the world’s leading facilities for oil production in southern Spain. The plant is probably the largest in the world and receives many visitors. The aim was to try CEPT® platform during full-scale production and to study how the technology can streamline the olive oil production.

Both the management of the facility and visiting experts were initially skeptical, but after a few hours of operation, it was obvious to everyone that the technology works. Thus, we have verified that the effect demonstrated in the laboratory is scalable. Oil quality improved significantly and the amount of high-quality olive oil that can be extracted increases by more than 10% after a CEPT® treatment. We now have a good basis for further discussions with olive oil producers and actors in the industry, discussions operated jointly with our partners TasNord.

Cooperation with AZTI Tecnalia

Arc Aroma Pure AB, while visiting Bilbao, laid the foundation for a collaboration with AZTI Tecnalia, Spain’s leading research institutes in “marinating and food”, “in the context of sustainable”. We will cooperate with the objective of developing equipment and methods based on CEPT® technology and to help prospective customers with evaluation and decision-making.

Media attention

Pär Henriksson has been interviewed by a journalist from Helsingborgs Dagblad and Sydsvenska Dagbladet common industry editorial, 8till5 and a photographer has visited our company. On January 24  a major six slide article was published, where Arc Aroma Pure AB was highlighted with text and images. The text began with the words “The Lund Company Arc Aroma Pure was the Skåne company which had by far the strongest price performance last year. Shares traded on AktieTorget rose by 311 percent. ”

“In this memo, my colleagues and I tried to summarize some of what is happening in the company. As everyone knows, we can not tell you everything, which would violate various rules and ethics. I can summarize that the tempo is high and that we work focused. We are in the middle of the process to move from research and development to marketing and production. A process if not entirely easy, but we are going. ” Says Pär Henriksson, MD, inventor and founder of Arc Aroma Pure.

For further information, please contact:

Pär Henriksson, CEO
Phone: 046-271 83 81
E-mail: per@arcaromapure.se
Website: http://www.arcaromapure.se

PO Rosenqvist, Chairman
Tel: 0705-50 03 86
E-mail: p.o.rosenqvist@arcaromapure.se

Arc Aroma Pure AB (publ) description:

The company will develop and market its patented CEPT® platform for the global cleantech market. The platform uses short, high voltage pulses that breaks the cell membrane and kills unwanted microorganisms. CEPT® therapy is an energy efficient and gentle alternative to heat pasteurization and has a variety of application areas. The efficiency of biogas production and introduction of new commodities which are not used today is in focus. Water, ballast water and liquid foods are examples of other CEPT® applications. The company was founded in 2008, has its headquarters in Lund and has received various awards and support from Vinnova and the Swedish Energy Agency.


CESI has granted EcoRub permission to publish EcoRub graphics. The information herein was primarily collected from http://www.ecorub.eu, http://www.ecorub.se/ , viavasterbotten.se and https://www.avanza.se


tires

It´s bonded to Polyethylene (PE) or Polypropylene (PP) with patented copolymers. PE and PP is frequently recycled often the EcoRub material consists of 95 % recycled polymers. Since 1995, EcoRub has focused in this area (also under the name Rerub AB). EcoRub has three subsidiaries –  Arbergo AB which develops, manufactures and sells the work place mats, EcoElast AB witch develops and sells products from EcoRub®and agriculture products through ProFarma AB.

Company History

In  2009, EcoRub started a cluster project in northern Sweden focused to generate value to the ecological rubber market. This cluster includes both development companies and companies with market connections.

In 2010, a 3 year EU funded project – EcoInnovation -was initiated  EU financed half the project cost and the other half was funded by EcoRub and the three partner companies. The EU had realised that a number of environmental innovations had difficulties in entering the market. The EcoRub project was called ACE (Advanced pre-commercialization of Eco rubber materials). The goal for the ACE-project was to establish Europe´s first value chain of recycled rubber from end-of-life tyres to high quality rubber & plastic end products.

This projects first half aimed to identify possible applications and markets for the innovation. EcoRub claimes to have succeeded very well with that and that the company was forced to exclude a long list of prospects, due to lack of resources. The company also claimes that only a handful of projects was selected.

The properties for the material is stated “to be very good and exceeds properties for similar virgin material as EPDM, Santoprene, etc . The material is also stated to have supreme ageing properties, it is easy to glue, has very good flex values and is easy to reuse. The hybrid material is a thermoplastic material and has substantial lower production cost compared to vulcanized materials”.

The invention has proof of concept since it has been used in the US for soon 20 years (between 15.000 and 20.000 ton are annually produced in the US) there. 50% of the rubber is delivered to the automotive business.

Four partners are involved:

1. Tyres Herco SA in Greece is a rubber powder supplier and will develop various standard grades of raw material.

2. Business Interest Association, ACS is a carsubcontractor cluster in Slovenia to find applications for our materials in cars.

3. Karlsruher institut fur Technologie is a research institution working with construction materials and to seek and develop applications for this.

4. EcoRub AB is the project leader and have the primary responsibility for the customization of the material and to seek European markets for ecological rubber.

Test production in the “Armstrong facility” in Holmsund:

http://viavasterbotten.se/2014/05/up-to-45-new-jobs-can-become-reality-in-holmsund/#.U33B6q5DjtM.twitter

“The company Ecorub will set up their production in the factory previously owned by Armstrong in Holmsund, outside of Umeå. The facilities have been vacant since 2011 when Armstrong closed down and 100 people were let go. But recently there has been new activity on the premises, it’s the company Ecorub that has moved in and they will start their production shortly.

Ecorub produces a special rubber made by recycled tires and plastics.

-The material is called Thermoplastic rubber (TPR) and has specific features that separate it from both plastics and rubber. It’s a special method that makes it possible to merge large segments of rubber, says Kurt Westermark, CEO at Ecorub.

The company has tested the production of rubber mats to store hazardous waste in landfill.

With the new production several new jobs will be created. Kurt Westermark said that if all goes according to plan Ecorub hopes to be able to hire up to 45 people in their factory.”

The May 2014 test production  exceeded the expectations:

Ecorub test the sausage

A plain homogenous film could successfully be produced. Pellets could also be fabricated:

Ecorub pellets

Key events 2014 (https://www.avanza.se/placera/sok/bolag.html/ALL?query=12423)

June 12, 2014

Arbergo AB and AB Prof Armawill, i. e. two of the Holmsund subsidiaries will be reallocated to purpose-built premises in Åsele. The reallocation shoould result in lower rental costs and other cost savings. The move frees up space in the facility in Holmsund space that will be needed for the planned production of rubber sheet and injection molding feedstock. The reallocation to Åsele is expected to be completed by mid-year.

June 19, 2014

EcoRubs acquisition of a disused factory floor in Holmsund has attracted the attention of a large international flooring company who wants to discuss a collaboration on the production of vinyl flooring and Wallcoverings and walls. Such cooperation would require that EcoRub also has access to additional production in the factory. Today, the contract gives EcoRub an option to test drive the production equipment and evaluate the conditions for  manufacturing of flooring products.

EcoRub has, as previously announced, has acquired the so-called rolling line in the factory floor in Holmsund. Although sales of EcoRubs organic rubber is expected to increase dramatically in the coming years, there will be excess capacity in this production for the foreseeable future.

Opportunities to resume manufacture of flooring products have been discussed previously and has now been updated by the interest shown by a large international flooring company. In order to produce vinyl flooring and Wetroom, EcoRub must get access to the so-called laminating line. It would, except for the manufacture of floors, also enable the production of certain products based on EcoRubs organic rubber which can not be manufactured in only rolling line.

EcoRub claimes that the market for this type of flooring is very large and that the production was stopped three years ago. Furthermore, the company states that this has created a vacuum in the market and there has been a near-monopoly for certain flooring products.

Another interesting possibility arises – in addition to the manufacturing floor – to quickly provide high capacity utilization in the plant. Experiments in the laboratory have shown that it is possible to replace environmentally harmful PVC with price and quality competitive organic rubber bearing in the bottom layer of vinyl flooring. Thus, this can open a significant market for EcoRubs organic rubber.

The option agreement expires on 1 May 2015. During this time EcoRub has the opportunity to conduct production trials to the extent it deems appropriate, evaluate production costs and negotiate with one or more flooring company for cooperation. The option is complimentary and includes apart from the production line even necessary facilities for manufacturing and warehousing.

Marketing and sales of flooring products has already begun. Ecorub has recruited a highly experienced person who has held leadership positions in a global flooring company and who has good contacts in most major flooring companies in Europe and other parts of the world. The goal initially is to contract with a major company and begin production of flooring products in 2015.

November 12,

EcoRubs has through its subsidiary ProfFarma AB sold and delivered the first mat of organic rubber to a open space animal barn in a facility in northern Sweden. The floor of this type are often very slippery, causing injury to animals. The carpet´s main role is in this case is to minimize the slipperiness. During the winter time-consuming manure removal with tractors might be avoided if the non-slip surface retains its properties. Experience to date is unambiguously positive.

ProFarmaAB has previously sold and installed carpets to stall aisles and boxes in cow houses as well as horse stables. There is a large potential market in Sweden and especially internationally for these products. To reach the global market, EcoRub has established contact with a major and global distributor of equipment to the stables and sales. The EcoRub goal is to achieve sales agreement with one or more international companies in this industry.

Rubber mats has previously been used as flooring in living quarters and there is thus an established market for such a product. EcoRubs environmentally sound stall mats of organic rubber and with an attractive price level are judged by the company to be very competitive in this market. Now, EcoRub now has reference facilities in various types of stables.

November 24, 2014 press release: EcoRub Issue oversubscribed

The rights issue in EcoRub, traded on AktieTorget, adds clean tech company about 9.3 million before issue costs. It is clear from a press release. The issue was oversubscribed with a subscription rate of about 150 per cent. If all of the attached warrants are exercised to the highest strike price, EcoRub will recieve an additional approximately 6.1 million before issue costs. “By the capital we supplied EcoRub will continue to move forward as planned, with a focus on production, marketing and sales activities. We now have the potential to expand the business and significantly increase the company’s sales,” says CEO Ulf Bergström in a written statement.

Selected additional information from http://www.ecorub.eu/

Ecological rubber as car parts

REQUIREMENTS FOR THE AUTOMOBILE INDUSTRY TO MAKE CARS WITH THE CONTENT OF RECYCLED RUBBER

http://www.ecorub.eu/ecology/ecological-rubber-as-car-parts/cars-with-recycled-rubber/

Since 2006, an EU Directive (2000/53 / CE) exisis, which says that 85% of the cars weight is to be recycled. Approximately 75% of a car’s weight is made of metals. From year 2015, 95%  of the car will be recovered.

The United States produced, in 2006, approximately 7500 tonnes of recycled rubber which about half goes to the American car industry in accordance with the patent EcoRub AB will be for Europe. Approximately 100 people are working to produce raw materials in the form of rubber sheets and granules. A total of 300 people work to make products to the American Automobile Manufacturers of recycled rubber. The market valueat that time in the U.S. is about 300 million SEK but is growing very strongly, with the material now accepted on a wider level, after having been tested at production scale for about 5-7 years.

The Swedish car companies is owned by American car companies and with the materials is also approved for use in the Swedish cars. What is missing is the approval of application level. The benefit for the customer is that applications are about 30% cheaper to manufacture than current products. They have lower weight, equal or higher quality and are capable of the car industry recycling requirements, which the current does not.

The EcoRub business idea is to introduce the possibility of mainly Volvo and Saab, and then with their consent to ensure that the subcontractors are using by the recycled rubber in applications. The raw material, in the form of raw rubber and injection molding, can be initially imported from the USA and in the next step to be manufactured in Europe.

Support will be available from Luleå University of Technology (Dept of Polymer Engineering at the Department of Applied Physics, Mechanical and Materials Engineering) for verification and development of material specifications. Support is also available from the United States from thay that  previously introduced the material to the American car industry.

The total market in Europe for products made of recycled rubber for the car industry as technical, quality and price is competitive with existing products has been estimated at 200 000 tonnes per year – about 5 000 000 000 SEK. An intermediate target is to take about 5% of this market, which represents an annual production of a rubber factory that go for ”full steam”.

The knowledge that is represented in the European patent is a world leader. EcoRub states that there are no serious competing solutions. The technology represents a good environmental choice in the sense that the rubber is recycled and the patented material in turn can easily be recycled. The manufacturing process is environmentally unproblematic. EcoRub also state tat “we work in an environment where competition is missing on our territory and the introduction and development work are already done and available to us”.

250 million used tires generated in the EU per year. In the world scale, it is four times as much. 1 billion tires are stored only in Europe. The mountain of used tires is unimaginably large. There are large amounts of resources and waiting to be exploited. They represent very large amounts of oil that can be reused. In the global scale, this represents in terms of oil, 2 supertankers perdays of the Exxon Valdes size (who ran aground in Alaska in 1989).

ecopicturecars

THE U.S. PRODUCED, IN 2006, APPROXIMATELY 7500 TONNES OF ECOLOGICAL RUBBER IN THREE COMPANIES TO AMERICAN CARS IN ACCORDANCE WITH THE PATENT ECORUB AB OWNS EUROPE.

The Swedish car companies is owned by American car companies and the materials is also approved for use in the Swedish cars. What is missing is the approval of application level. The benefit for the customer is that the applications are usually less expensive than current products. They are (usually) lower weight. They are equal or higher quality. They do automotive recycling requirements, which the current does not.

The total market in Europe for products made of recycled rubber for the car industry which in technology, quality and price is competitive with existing products, has been estimated at 200 000 tonnes per year – approximately 5,000,000,000 SEK. This represents about the amount of tires that are discarded in Scandinavia.

Below you will find the products found in the cars today.

ecoapproved

THE TABLE ABOVE IS FROM THE YEAR 2005, TODAY ALL OF THESE PRODUCTS ARE APPROVED.

Measured in tonnes, the largest item is mudguards for trucks and passenger cars. Here is the spare parts market dominant. Then the mats lying on the beds of pickups and similar, then the seal around the wheel arches, air intake and radiator package will take place. Now the sealing strip round doors and windows are under development, and the same applies to one material that can be used in the ”bumper” and other bodyparts.

RUBBER RECYCLING AND GREENHOUSE GAS EMISSIONS

A ton of rubber tires gives, rough estimated, three tonnes of carbon dioxide when incinerated. When using rubber tires for heating purposes, about 20% of the energy spent in producing the tire.

“But when you reuse one tonne of rubber tires you reduce consumption with five tons, because the amount of energy released to the production is five times larger. It corresponds in turn 15 tonnes of carbon dioxide. At least half of the contents of our rubber products are made of recycled tire rubber. So roughly speaking we can say that a tonne of EcoRub rubber products equivalent to reducing carbon dioxide emissions by approximately eight tonnes. Depending on availability, the remaining half is replaced with recycled plastic to 80% and then we are approaching a situation where EcoRub rubber products only has a carbon footprint of a tenth of new rubber!”

A Swed is estimated to produce an average of six tonnes of carbon per year.

In Europe (and Sweden) the reuse of tire rubber into new products are so low that statistics are not implemented. In Sweden, most of the decommissioned car tires are incinerated and allowing 80% of the energy released to the production of car tires go to waste. This despite the fact that there is a producer responsibility of car tires in Europe, aimed at the material to be reused.

EcoRub AB has a unique patented technology to recycle rubber tires into new products. Today, manufactured around 7500 tonnes to American automobiles according to this technology. EcoRub AB plans to start recycling of tire rubber in Piteå and manufacture new rubber products to automobileindusty among others.

EcoRubs technology provides properties that are similar to ordinary rubberqualities and that in turn can easily be reused.

Polycyclic Aromatic Hydrocarbon Oils 

Almost all oils contains Polycyclic Aromatic Hydrocarbon (PAH). But if it contains less than 3%, according to EU regulations, it´s not to be declared. PAH´s are harmful substances which affect, microorganisms among other and provides lung damage in humans and risk of cancer. What is known is that those who manufacture rubber products have an increased risk of lung problems and cancer.

Any impact on the environment around the roads are not yet known except for the effect on algae and microorganisms, mainly in aquatic environments.

Main emission sources are car exhaust gases and particles from asphalt roads. Then the dust from the tires. Abrasion from asphalt roads is expected to generate 110 tons per year in Sweden, vehicle exhausts 38 tons and tires provide about 10 tons.

Particulates from tires and road surfaces are mainly located close by the roads. However, traffic fumes migrate long distances and it is PAH´s from car exhaust fumes which in practice may be the risk of ”ordinary people”.

There are a lot of unserious lobbying and false information on this where players ride on the fact that the levels below 3% do not have to be declared and the appearance of their oils and rubber products do not contain anything at all.

Used Rubber (aged tires) lose a lot PAH´s in their use – 25%. It results in the second-hand rubber may well contain as much (little), PAH´s as new rubber shown as PAH-free under EU rules. Furthermore, we will be aware that the PAH-oil in the rubber, very slowly leaks out.

A pile of cut up tires at 2000 tonne leach out as much PAH to environmental in a period of 30-100 years, as emissions from driving with a 4-strokecar consuming 1 kg of petrol. A new two-stroke engine emissions of PAH´s from 1 kg gasoline equivalent leaching from 16 000 tonnes of rubber clip for a long time (30-100 years).

EcoRub rubber products contain about half plastic polymers. This allows the content PAH´s to sink to half. Furthermore the plastics locks into oil in exactly the same way as plastic bottles of oil (which you buy at gas station) will hold oils.

EcoRub rubber products are therefore very low risk in comparison with new rubber, although the new rubber contains oils that have lower PAH levels than 3%.

Only to start the car in the morning emit significantly more PAHs in the environment than potential leaching from the products of recycled rubber as an entire factory can create.

The mountain of tires

The mountain of used tires is unimaginably large. And do not even know what to do with it. Only in Europe 3.3 million tonnes used tires are created per year. In the world scale, it is four times as much. 1 billion tires are stored in the EU.

The world-scale corresponds to the used tire, measured in oil, two supertankers per day of the Exxon Valdes size (who ran aground in Alaska in 1989).

The EU has a ”ladder” for the valuation of how tires are reused . Bottom is a landfill (which is forbidden – but still takes place), the next is used for energy purposes, then ”material compensation” – where smashed car tire rubber replaces other materials for examle gravel for construction of roads, sports facilities etc. The top step is re-farming of rubber as a material for products with similar properties.

Of the collected used tires in Europe are:

  • 13% for retreading and export of worn tires to countries with lower standards
  • 37% for a ”material consideration” (soccer fields, flagstones, etc.)
  • 38% to energy recovery (tires used as fuel)
  • 10% spent on landfill

Recycling tires into new rubber products is so low that statistics are not implemented but should not exceed 1%.

In Sweden, however, most of the used tires are incinerated. Then 20% of the amount of energy required to manufacture the tire are recovered. When the tire is recycled  it´s recovered the closed volume 55 times better. Within the EU, recycling of tires is a prioriticed issue and tightening of the laws is continuous to get that state.

LANDFILL BAN

From 2003 it was forbidden to deposit the entire tire and from 2006 was forbidden to deposit the cut tire. Tightening is announced in terms of reducing the burning of tires.

These are hard facts on rubber recycling.

Technology exists, developed by EcoRub AB, where rubber tires can be turned into rubber sheets, injection molded and extruded products. More than 7500 tons per year of those products are manufactured in the United States in accordance with EcoRub’s technique of which 7 are products of Ford’s, Chrysler’s and GM’s cars.

TO DEAL WITH THE RECYCLING OF USED RUBBER IS AN IMPORTANT PART OF LIMITING THE GREENHOUSE EFFECT. RECYCLED RUBBER FROM TIRES REDUCES THE CARBON IMPACT BY 45 TIMES COMPARED WITH THE NEW RUBBER.

Important note: The reader might argue that EcoRub does not fulfill these criterias today, due to the current import from the US. However, soon EcoRub plans to establish the full value chain within Sweden.

Ecological rubber

Shore A is the measurement of elastic hardness (available in rubber, plastic and other elastic material). The most commonly used hardness values are 65 and 75 Shore A hardness. Lower can be chosen when great flexibility is needed and higher hardness can be selected when large loads occur, such as

gaskets for high pressure. Hardness of 65 Shore A hardness of rubber is normal for rubber flooring, etc. The rubber with 75 Shore A can support the weight better if that’s needed. The thickness of the sheets can be a maximum of 12 mm and the width, in most cases, up to 250 cm. All sheets can be pre glued with pressure sensitive adhesive. The hardness can be varied according to requirements, but the stock is in 65 Shore A.

SURFACES:

  • Grained / Levant
  • Safety grip
  • Super grip
  • Wide ribbed
  • Narrow grooved
  • Grooved
  • Rough grooved
  • Channel grooved
  • Skin patterned
  • Sand / smooth
  • Pyramidal
  • Diamond plate pattern

And finally, a very relevant article from the Rubber Manufacturers Association (RMA):

RMA: Tire recycling has come a long way

WASHINGTON (Nov.10, 2014) — In recognition of National Recycling Week, Nov. 10-16, the Rubber Manufacturers Association (RMA) has issued a report showing that more than 90 percent of scrap tire piles in the U.S. have been cleaned up while 96 percent of the more than 230 million tires discarded in 2013 were reused in several markets.

Other data from the report include:

  • The number of stockpiled tires has dropped to 75 million in 2013 from 1 billion in 1990;
  • Colorado and Texas have the most stockpiled scrap tires, 31 million and 15 million respectively. Colorado passed a law in 2013 to clean up its mammoth piles. Texas does not have a state scrap tire management program. Other states with measurable tire stockpiles include: Arkansas, New Mexico, New York, North Carolina, Pennsylvania, Virginia and Washington;
  • In 1990 only 10 percent of scrap tires generated were diverted from the landfill; by 2013 about 95 percent of scrap tires were consumed by other markets; and
  • Three scrap tire markets consumed 86 percent of annually generated tires in 2013 — tire-derived fuel (TDF) used 56 percent, ground rubber 25 percent, and civil engineering 5 percent.

TDF is used by the pulp and paper industry and the cement industry as a supplemental fuel due to the high BTU content, the RMA said. Ground rubber is used to create a variety of products including athletic fields, playground cover and binding agents used to create asphalt road surface. Finely-ground scrap tire rubber also is used by some manufacturers in new tire construction.

Civil engineering applications use shredded tires as a substitute for other “fill” materials such as sand or gravel. Common uses include road and landfill construction and septic tank leachate fields.

“Ongoing scrap tire management efforts in the U.S. have been tremendously successful,” said Dan Zielinski, RMA senior vice president, public affairs. 

“Tire manufacturers have worked across the nation to help establish effective state scrap tire management programs, often funded by user fees on tire sales, to enforce regulations, clean up tire piles and promote environmentally sound, cost-effective markets for scrap tires. The numbers tell the story: the effort is paying off in a cleaner environment.”


EcoRub market cap prior to the rights issue: ~45 MSEK

November 28 Market cap: 79 MSEK (positive share price trend)

At  2015, the EcoRub goal is to  have a market value of 25 M€ (http://www.ecorub.eu/).

CESI speculates that this goal might be met within 16 months (if the global stock market remains relatively stable).

Conclusion: A ~300% potential upside (if this speculation is correct)


February 5, 2015: A POSITIVE AND CRITICAL MILESTONE UPDATE:

February 5, EcoRub Press Release

EcoRub Cooperation with Ragn-Sells secures access to high quality raw material

EcoRub and Ragn-Sells starts a partnership that gives EcoRub access to high quality rubber powder / granules. Ragn Sells, in return, gets access to landfill mats.

The main raw material in EcoRubs planned production is rubber powder / granules based on used tires. Ragn-Sells may, in its modern facility in Vanersborg manufacture materials in the qualities EcoRub requires for its production and is also free of banned chemicals, metal and textiles.

Through the Ragn-Sells collaboration, EcoRub secures that the specific material requirements by relevant industries e. g. motor vehicle industry, are met.

Ragn-Sells has sufficient capacity in its facility to meet EcoRubs needs of rubber powder / granules for the foreseeable future. EcoRub and Ragn-Sells both have high expectations the cooperation. For example, regarding the acceptability of the recycled rubber materials and their dissemination to various uses.

C.E.S.I. Conclusion: Now, EcoRub is ready to finalize major contracts with major customers (discussions are ongoing according to the CEO).

Best regards, C.E.S.I.

The author, Cutting Edge Science Invest, is an EcoRub share holder. Cutting Edge Science Invest can not guarantee, or take into  accountability, the content of truth and accuracy of the information in this article/post.Thus, Cutting Edge Science Invest requires that a possible reader gather complimentary information if any type of investment in the company described above is considered. Cutting Edge Science Invest provides personally biased information and at best also “general information and opinions”. The article/post does not contain professional investment advice. 

Introduction

Arc Aroma Pure develops a system, which has the potential to substantially improve efficiency of biogas production and reduce greenhouse gas emissions. Through the optimization of biogas production, more energy can be extracted from the organic material. However, let´s start to answer a few questions: What is biogas, how is it produced and why will greenhouse gas emissions be reduced using the Arc Aroma pure technology?

Biogas – Definition and climate benefits 

Biogas could be defined as “a mixture of methane and carbon dioxide produced by the bacterial decomposition of organic wastes and used as a fuel”. Biogas is a renewable fuel that is part of the natural cycle. Biogas consists mainly of 65 percent methane (CH4) and 35 percent carbon dioxide (CO2). Methane, CH4, is the high-energy main component of biogas. Methane is also a potent greenhouse gas with 20-25 times stronger greenhouse effect than carbon dioxide. The combustion of methane is carbon dioxide and water. The carbon dioxide released by the combustion of biogas is converted within nature’s own cycle

Biogas production

Most organic materials can be used for biogas production. A large percentage of these materials are in the agricultural sector in the form of manure from livestock and residues and waste from crop production

In a biogas plant this natural process is utilized. In this process, a material such as sewage sludge, manure, agricultural crops and food waste is placed or pumped into a digester, which is a completely airtight container. In some cases, pretreatment necessary for reception, pumping, mixing and degradation to function optimally.

The gas in the digestion chamber is normally saturated with water vapor. In addition to the biogas, a nutritious digestate is formed, which can be used as a fertilizing agent.

The anaerobic digestion process can be divided into three main stages; hydrolysis, fermentation and methane production.

In the first step, complex organic compounds are decomposed into smaller compounds such as sugar and amino acids by microorganisms and enzymes .

The second step is fermentation. During fermentation, a large a number of intermediate products are formed, including alcohols, fatty acids and hydrogen gas.

In the last step of the digestion process, methane gas is formed by an unique group of microorganisms.

Biogas applications

Biogas can replace fossil fuels and reduce CO2 emissions. Purified biogas can be used to power vehicles. The energy in the biogas can also be used for heating, either locally or through district heating networks. Another application is production of electricity, which may contribute to an increased proportion of green electricity into the grid. The fastest growing area of use is biofuel. Methane molecule can also be used as raw materials in manufacturing processes. Examples of products where methane may be included as raw materials include paints, plastics, furniture, feed and lubricating oils. (www.biogasportalen.se)

What makes Arc Aroma Pure a cleantech / greentech company?

Arc Aroma Pure develops a pretreatment facility that enables optimization of biogas production. In most biogas substrates, a major part of the nutrients are encapsulated (=hidden), which means that the digestion process is not optimally auto catalyzed. Thus, the digestion process will be slow. CEPT® acts directly at the cellular level and smashes structures which results in a faster fermentation process and a higher yield of released gas(es).

Furthermore, there is an unmet need from biogas manufacturers to use new substrates. A breakdown of the raw material at the cellular level opens the possibility of using new raw materials that have not previously been considered suitable for biogas production. In addition, there is further potential to use technology as a cool and energy efficient alternative to heat-based sanitation (cleaning of raw material for biogas production). The company’s main focus in the current situation is the efficiency of biogas production.

What is CEPT? CEPT is Closed Environment PEF Treatment. PEF is the abbreviation for Pulsed Electric Fields (PEF) or electroporation,  a technique that is routinely used, for example, in the introduction of new genetic materials into cells. The Arc Aroma Pure system is pre-installed in container modules to facilitate an easy connection to the customers´curent production lines (!).

Evaluation of the potential of CEPT®

In the fall of 2009, Arc Aroma Pure signed an agreement with a leading energy group on a jointly funded feasibility study. In 2010, the collaboration was extended and the Arc Aroma Pure technology was verified both in lab scale and process scale. The parties agreed that the technology can be used as a substitute for heat-based pasteurization. Laboratory experiments also showed that the technique can radically streamline the production.

During the fall of 2012, the parties completed the agreement with an appendix concerning a large-scale trial which is still active today. The major identified advantages were:

Energy efficient sanitation
More efficient digestion
A higher gas yield was observed.
The downtime of the process was also minimized
The investment as such was also minimized
The total process was optimized
The technology aided a continuous process (equals better utilization of capacity) utilization)
A desire to use new substrate was identified by (Pulp and paper industry)

arcaroma saving

About Arc Aroma Pure

Arc Aroma Pure AB was founded in 2008 after a long period of research and development for various applications based on electroporation. The management team consists of Pär Henriksson, CEO with extensive experience as an innovator and entrepreneur, Martin Hagbyhn former CEO Purac and Kockums and Anders Hättmark with extensive experience in business development and recruitment

The concept behind the CEPT is based on electroporation, a proven technology, used today in micro and molecular biology. It is a continuous process that act directly on cells and structures by short, pulsed electric field creates pores in the cell membrane and cell walls. This leads to the death of microorganisms and nutrients from different types of raw materials are released and become more readily available for digestion. The result is faster fermentation and a higher gas exchange.

Depending  on the substrate composition in the substrate, the Arc Aroma Pure CEPT® pre-treatment improves the methane production yield by 15–50 % (!). Additionally, the fermentation rate is increased allowing for the higher yield to be produced in shorter time than without a CEPT pre-treatment. This fact allows for the hold time in the reactor to be reduced allowing the plant to convert larger amounts of raw material to gas in the same timeframe. The target markets are biogas producers, technical consulting companies, wastewater treatment plants, universities and scientists plus a host of applications for other target markets. In 2014 there will be a global launch of the CEPT starting in the Nordics. 

Other identified and creative applications of Arc Aroma Pure clean technology – In ballast water treatment.

Ballast water treatment today is heavily discussed today, primarily due to that marine ecosystem are being mixed up. Alien marine species have been found in areas where they do not belong, which has led to disruptions including the fishing industries. This is a global concern. IMO classifies the above problem as fourth biggest threat of the oceans. This led to the convention “Control and Management of Ships’ Ballast Water Sediments” adopted in 2004. The Convention phases in purification methods (as required) with the start of the smaller boats in 2009. CEPT® treatment involves a biological treatment of pumpable products and therefore it can be used with great benefits as it is both energy efficient and also more environmentally friendly than alternative methods. This is due to that the purification occurs without heating of the water or addition of chemicals.

http://en.wikipedia.org/wiki/Ballast_water_discharge_and_the_environment

http://www.arcaromapure.se/?page_id=89

Other identified and creative applications of Arc Aroma Pure clean technology –  in Water and Food

In addition to the biogas application, the board believes that the CEPT® platform,will add value as an energy efficient alternative to biological treatment of liquid products. Heat is traditionally used in the purification / sanitizing processes, for example within water and liquid food. In this context, the process is called pasteurization. Pasteurization is a generic term for various techniques in which food is heated to a certain temperature for a certain time. This is performed with the aim to kill harmful bacteria and microorganisms. The CEPT® platform can perform this without heating, and this is called cold pasteurization. Cold pasteurization has great advantages over conventional pasteurization because the treated product is not affected in respect to either taste or texture. For example, CEPT® treated juice tastes just like freshly squeezed juice. Also protein-rich foods are interesting candidates for CEPT® treatment, as these can not be heat treated because proteins denature and solidify when exposed to heat. CEPT® technology ca also be applied in the purification of water. Contrary to heat based pasteurization, heat resistant effectively kill heat resistant microorganisms. Furthermore, cold pasteurization is significantly more energy efficient and cost effective in comparison to heat-based pasteurization. The supply of clean water is a growing problem in many parts of the world. The consequence is an increasing demand for environmentally friendly and cost effective water purification methodologies. Here, CEPT® could play a decisive role in the future as it is both environmentally friendly and cost effective. Why? The Arc Aroma pure technology is both energy efficient and avoids addition of chemicals. This is in contrast to the majority of water treatment options available on the market today.

Other identified and creative applications of Arc Aroma Pure clean technology – Optifreeze 

Arc Aroma Pure holds approximately 27 percent of the shares in another company, namely OptiFreeze AB. Pär Henriksson (CEO and director of Arc Aroma Pure) is the CEO of Optifreeze and Anders Hättmark is a Optifreeze director (and also a board member of Arc Aroma Pure).

OptiFreeze and the link to the Arc Aroma Pure technology could be summarized with the following points: Patent pending freeze technology that allows fruits and vegetables to retain their flavor and shape even after thawing. OptiFreeze AB apply the Arc Aroma Pure technique in its pre-treatment facilities and is thus dependent on the Arc Aroma Pure’s technology.

When fruits and vegetables are thawed after freezing, crystals grow so fast that the cell structure collapses. By controlling the fluid inside and outside the cells, the cell structures are safeguarded. The technique is based on the application of vacuum technology along with PEF treatment. The treatment enables cell survival, which in turn leads to that the food flavor, texture and quality will be maintained throughout the freezing and thawing process!

Arc Aroma Pure – The 2015 Vision

“In 2015 Arc Aroma Pure AB, will be a well known company in the region. CEPT® is a popular brand that stands for innovative and environmentally conscious relationship with customers and end users. “A pre-processing based on CEPT® platform will be the obvious choice for the efficiency of the biogas industry and Arc Aroma Pure will be a research-based and well-respected player in the global cleantech market. This will be achieved by the following Arc Aroma Pure activities: Development, manufacturing and marketing of a patented and ready to use CEPT®-line pretreatment of biogas industry substrates. In the following step, other applications and customer segments will be explored.”

Arc Aroma Pure’s CEO Per Henriksson very recently presented the company´s technology at “Gasdagarna” (October 22 to 23 in Båstad, Sweden). Gasdagarna was organized by the industry association Energy Gas Sweden. The event is aimed at companies and organizations in the field of energy gases, where biogas is an important part. The company also had a booth and presented the CEPT product. “The invitation was a result of the interest in the technology among biogas producers. Our presence in Gasdagarna will be an important step as we now entering a market, ” said Pär Henriksson, CEO, inventor and founder of Arc Aroma Pure.

 

Intellectual property, patent strategy and patent situation

Patent situation according to the low quality Arc Aroma Pure home page:

patent arc aroma pure

Arc Aroma Pure’s patent strategy is focusing on the generator construction design and its synchronization, and the treatment chamber to ensure a stable environment. The generator consists of several modules that are optically synchronized, these are constructed from available simple components. The treatment chamber is designed as a positive pump, which ensures a stable environment. This solution is scalable and can be customized as needed. Included in the patent is also a description of the method and a number of listed applications and substrates. Arc Aroma Pure intends to apply for additional patents in the event that the Board determines that the Company’s intellectual property protection can be further strengthened. A protected trademark (403,502) for CEPT® is also granted. The patents and the trademark is owned by Arc Aroma Pure.

However, recently it seems that a Isreal- ,Chinese-, European- and US- patent has been approved. 

https://www.avanza.se/placera/pressmeddelanden/2014/08/18/arcaroma-europeiska-patentverket-godkanner-patentansokan.html

http://www.sydsvenskan.se/ekonomi/lundabolag-far-europapatent/

https://www.avanza.se/placera/pressmeddelanden/2013/04/03/arcaroma-positivt-svar-fran-us-patent-and-trademark-office.html

https://www.avanza.se/placera/pressmeddelanden/2013/06/27/arcaroma-patent-beviljat-i-kina.html

https://www.avanza.se/placera/pressmeddelanden/2014/06/09/arcaroma-godkant-patent-och-bolaget-uppmarksammat-i-media.html

Per Henriksson, founder and president (translated and slightly edited by C.E.S.I!)

“I believe CEPT® will make biogas production more profitable and become independent from state aid and subsidies. The technique can also be used in decentralized production of smaller plants. It is my hope that previously unprofitable commodities can be used even without the need to invest in the costly generation II technology (gasification). In 2009 produced, approximately 1.4 TWh of biogas was produced in 229 facilities in Sweden. The industry has a relatively aggressive expansion plan, the “Vision 2020″, which states that Swedish biogas plants shall produce in total 20 TWh in 2020. To meet this goal, new substrates, which today are not profitable to use, must be successfully introduced. CEPT® smashes structures and releases nutrients. Therefore, we have high hopes that even some crops, algae, seaweed, and by-products from the forest industry can be used with the help of the CEPT® platform, which would represent a paradigm shift. In the leading biogas nation, Germany, a new biogas plant is started every eight hours. Sweden has a less honorable track record, but we have high hopes of being able to alter the development of biogas production, initially in Sweden and then internationally.”

http://www.arcaromapure.se/?page_id=33

A 2014 status report (the year´s key press releases translated, edited and summarized by C.E.S.I.)

  • February 11 ,2014: Arc Aroma Pure AB has signed an agreement on cooperation with Nordic Water Products AB (press release translated by C.E.S.I.)

Arc Aroma Pure and Nordic Water Products AB has for some months been performing pilot attempt at a wastewater treatment plant, where the two companies’ technologies are combined in order to see if we can achieve a heightened effect. The trials have been successful and full-scale test will therefore start in spring 2014 and last for about six months. The full-scale test is designed to verify the synergistic effects observed in the pilot tests. Currently, Arc Aroma Pure believes that the results may be published only after the full-scale test ended. If the results of the full-scale test is positive, the companies intend to enter an agreement which will state that Nordic Water Products AB will market and sell the combined technologies globally, through subsidiaries and distributors. Arc Aroma Pure’s CEPT® platform will then be included as a component in the combined technique.

Nordic Water Products AB develops and markets mechanical and engineering products and technologies for the treatment of water and wastewater to municipal and industrial customers worldwide. “We are very pleased that we have now reached the point where we can start full-scale tests. If the tests turn out well, we have a partner with a solid reputation in the global market. Nordic Water is an innovative company with several exciting products on the market. Working with a company such as Nordic Water, gives us credibility and access to a very extensive global marketing and distribution network, ” says Pär Henriksson, President of Arc Aroma Pure AB.

“Nordic Water sees great potential in the combined techniques with many applications in our segment wastewater. We are actively seeking new innovative Swedish technology and Arc Aroma Pure suits us well because the company represents innovation and curiosity,” says Göran Arnkil, Partner, Nordic Water Products AB.

https://www.avanza.se/placera/pressmeddelanden/2014/02/11/arcaroma-arc-aroma-pure-ab-publ-har-traffat-en-overenskommelse-om-samarbete-med-nordic-water-products-ab.html

  • April 15, 2014: Arc Aroma Pure AB has entered into an agreement for the evaluation and selling of CEPT® platform (press release translated by C.E.S.I.)

Arc Aroma Pure AB looks forward to working with BroGas, not least because the BroGas biogas plant is very well maintained and possesses great skills. Arc Aroma Pure will, in cooperation with BroGas, further develop the company CEPT® platform.

Meanwhile BroGas strive to increase the efficiency of biogas production. Together the companies will evaluate and analyze CEPT®-platform benefits of biogas production. It is also part of the agreement that BroGas will assist and participate in the visits and views for future customers and stakeholders. The plant will therefore be an important future demo site. In parallel, Arc Aroma Pure will own the right to use the built-in function for remote access to enable viewing of a facility in operation at the continued marketing. As compensation, BroGas has been offered a discounted price if the companies choose to implement a commercial business.

Normally, the Arc Aroma Pure pricing is based on a payback period of less than 36 months, which corresponds to the value generated by the pretreatment with CEPT® platform in terms of biogas production.

“I look forward to a good partnership and mutual benefit. BroGas feels like the right partner. I am confident that we will have a demonstration facility that attracts visitors, while BroGas simultaneously can streamline their biogas production and achieve better profitability. After conducting large-scale tests of a biogas plant in the southern part of Sweden, we have produced the first three industrial CEPT® platforms and it’s a big step forward for the company that we can now begin a collaboration with an additional reliable and professional partner”, says Pär Henriksson CEO Arc Aroma Pure AB.

Arc Aroma Pure AB has conducted large-scale tests of a biogas plant in southern Sweden and found that the platform will lead to tangible improvements in efficiency while the technology enables new substrates which can be used for biogas production. Furthermore, the tests suggest that, in the future, the CEPT® platform, may replace the expensive and energy-consuming heat-based sanitation. “We want to be at the frontier in terms of biogas production and we believe in the basic technology CEPT® platform is based upon. Therefore, we have high hopes that the installation will lead to a clear increase in biogas production, says Magnus Ahlsten, Chairman BroGas. The companies’ collaboration will start in April and commissioning of CEPT® platform is planned for 2014. The evaluation phase is expected to be completed in autumn 2014.

https://www.avanza.se/placera/pressmeddelanden/2014/04/15/arcaroma-arc-aroma-pure-ab-har-ingatt-avtal-om-utvardering-och-forsaljning-av-cept-plattform.html

  • May 13, 2014: Optifreeze in Swedish National Television: http://www.svt.se/nyheter/vetenskap/ny-frysmetod-for-gronsaker

(Optifreeze is utilizing the Arc Aroma Pure´s technology. Arc Aroma Pure holds approximately 30% of the shares in Optifreeze, see below for more information)

  • June 19, 2014: Industrial scale testing in collaboration with Swedish Biogas International AB (press release translated and summarized by C.E.S.I.)

Arc Aroma Pure AB and Swedish Biogas International AB has signed an agreement to conduct full-scale tests of the AAP’s CEPT® platform industrially at one of SBI’s biogas plants. These facilities are located in Lidköping, Örebro, Västerås and Jordberga. A first project meeting took place in week 25. The CEPT® platform will be evaluated in operation for about nine months. The agreement means that SBI is given the opportunity to take over CEPT® platform and paves the way for the installation of additional CEPT® platforms within the SBI Group. The board of Arc Aroma Pure estimates that revenues for the company in connection with the current cooperation with SBI can be generated beginning in Q4 2014.

With this agreement, the Arc Aroma Pure now reached the target to launch three pilot partnerships. The promotion will continue and be intensified.

“Arc Aroma Pure has achieved several important goals with the SBI agreement. Furthermore, the Arc Aroma Pure has now established another important reference facility and simultanously made agreements and begun deployment of all CEPT® platforms in the zero series. Commissioning of the three CEPT® platforms gives us several important reference objects where biogas producers and other interested parties can see and evaluate the platform in an industrial operation. The three reference sites provide further opportunities for Arc Aroma Pure to collect data that could be important to attach and highlight in the marketing. That is: Data that provide “proof” that our CEPT® leads to a significant increase in efficiency of biogas production”, says Pär Henriksson, President of Arc Aroma Pure AB .

https://www.avanza.se/placera/pressmeddelanden/2014/06/19/arcaroma-industriellt-fullskaliga-tester-i-samarbete-med-swedish-biogas-international-ab.html

  • August 14, Two CEPT® generators sold to OptiFreeze and cooperation agreements signed (press release translated and edited by C.E.S.I.)

OptiFreeze AB has ordered equipment from Arc Aroma Pure AB for a total value of 894 000 SEK. The order includes two CEPT® generators, a lab CEPT® and a mini-CEPT®. In addition, the parties have signed an agreement under which Arc Aroma Pure will provide consulting services and materials to the Optifreeze planned pilot plant.

The two ordered CEPT® generators, are simplified versions of the CEPT® generator used in the company’s pre-treatment container for biogas substrates. One of the generators is called lab-CEPT® and will be used in the laboratory for internal attempts at OptiFreeze. The second generator, entitled the mini-CEPT®, will be used in pilot experiments in food industrial environment.

The two generators will be delivered in the coming weeks. Arc Aroma Pure CEPT® generator is modular and can be delivered in different configurations, with capacities ranging from a few kW to several MW pulse power, which is adapted to customer needs. The Arc Aroma biogas or water treatment platform includes two powerful CEPT® generators. The CEPT® platform can be used in a wide variety of areas, some examples of interesting applications are pasteurization and increased extraction of juice or olive oil (C.E.S.I. prediction: juice= next press release!?)

In addition to the order of two CEPT® generators, the companies have entered into an operating agreement that will further build value on the earlier collaboration. The agreement means that OptiFreeze purchases consulting hours and materials of Arc Aroma Pure AB needed for the the construction of the pilot plant in Eslöv.

“Historically, the companies have had an extensive collaboration. The newly signed contracts concretize that collaboration. We consider OptiFreeze as an important customer, not least because of its potential, but also as an important partner and as an investment. Arc Aroma Pure is actively working on several fronts where biogas optimization is the main focus. We have very high hopes that our CEPT® technology will be well received in both biogas and water treatment area, but we also have prospective partners and customers in other application areas that we should explore and develop in the near future. The company faces a breakthrough“, says Pär Henriksson, President of Arc Aroma Pure AB.

https://www.avanza.se/placera/pressmeddelanden/2014/08/14/arcaroma-tva-cept-generatorer-salda-till-optifreeze-samt-samarbetsavtal-tecknat.html

  • September 5, 2014, Arc Aroma Pure has sold CEPT® equipment to Klippan Municipality (press release translated and edited by C.E.S.I.)

Arc Aroma Pure AB has sold CEPT® equipment to Klippan Municipality. The equipment is part of a pilot project run in conjunction with the municipality and Nordic Water AB. The purchase price amounts to 7 million, AAP co-finances the project with about 3 MILLION.

Arc Aroma Pure AB has reached an important milestone with the sale of CEPT® equipment to Klippan Municipality. The equipment included in the pilot project previously announced, the purchase price amounts to SEK 7 million. As a project participant is co-financing the project with AAP about 3 MILLION. Other partners and funders in the pilot is Nordic Water AB and Klippan Municipality. The Swedish Energy Agency is supporting the project.

“The purchase agreement is an important milestone in Arc Aroma Pure’s history and at the same time a great recognition of our technology. The project is located on the boundary between water treatment and biogas production, which is a huge market where our CEPT® technology has very good prospects. The wastewater treatment plants provides large amounts of sludge. This means great opportunities for our technology CEPT®, due to the fact that CEPT® processing has increased the capacity of the treatment plants and reduces the amount of residual sludge. Likewise, the amount of biogas produced will increase both in terms of yield and total amount“, said PO Rosenqvist, Chairman and Marketing Director at Arc Aroma Pure AB.

https://www.avanza.se/placera/pressmeddelanden/2014/09/05/arcaroma-arc-aroma-pure-har-salt-cept-utrustning-till-klippans-kommun.html

 

  • September 15, Arc Aroma Pure and Malmberg Water AB has signed an agreement (press release translated and edited by C.E.S.I.)

Arc Aroma Pure AB (AAP) and Malmberg Water AB (MWAB) have signed a cooperation agreement which states that MWAB will market and sell BioCEPT® biogas operators in a number of markets around the world. The agreement has a sales value of 50 million per year and the volume is expected to increase over time.

MWAB start their marketing efforts directly with the activities supported by the AAP in Sweden and abroad. MWAB currently has conducted nearly 100 plants for biogas upgrade in Europe and China. Biocept ™ is a natural supplement for MWABs catalog and marketing plan. The agreement also includes aftermarket and product development.

“Malmberg Water is an impressive partner who has shown tremendous growth in the segment of biogas. I am confident that this agreement will make a clear imprint in our sales figures. We now have the opportunity to partner with a company that has a long history and driven by a strong environmental commitment, combined with strong capabilities in several interesting segments. MWAB have shown a great deal of knowledge, insight, and not least, a great deal of enthusiasm about the opportunity to market our Biocept ™, “said PO Rosenqvist, Chairman and Marketing Director at Arc Aroma Pure AB.

“Now we can offer another innovative process solutions in water treatment and biogas, and it will be a great value to both our existing and future customers. Marketing of Biocept ™ is focused towards key customers and the signals we receive are positive. We are confident that CEPT® technology can contribute to a substantial optimization of biogas production and will be an important element in the construction of the energy neutral wastewater treatment plant”, says Per Johansson, Business Area Manager at Malmberg Water AB.

https://www.avanza.se/placera/pressmeddelanden/2014/09/15/arcaroma-arc-aroma-pure-och-malmberg-water-ab-har-tecknat-avtal-skall-marknadsfora-biocept-pa-den-globala-biogasmarknaden.html

  • October 23, Increased efficiency of olive oil production in Spain (press release translated and edited by C.E.S.I.)

Arc Aroma Pure AB (AAP) has teamed up with one of the world’s largest and most modern plants for the production of olive oil. A pilot based on CEPT® platform will be set up in the production plant in southern Spain. The agreement is a result of the experiments conducted in the laboratory, site visits and discussions held for over a year. Our Spanish distributor, Tasnord SL, has played a crucial part in the discussions and will be involved in the installation and the process in general.

Arc Aroma Pure AB, Tasnord SL and the Spanish producer has signed an agreement to install a pilot plant in the producer’s state of the art manufacturing plant for olive oil, a plant which is also one of the largest in the world. The parties have agreed on the establishment and initial attempts at AAPS laboratory has been implemented.

CEPT® platform has the potential to increase the amount of oil that can be extracted from the olives, CEPT® technology adds no heat, why olive oil volatile flavors are preserved and the quality is very high. AAPS and our partners hope that the method will increase the quality of the oil in general, but also that the method will increase the output share of the, higher market valued, extra virgin olive oil . Furthermore, it is likely that the CEPT® based process has the potential to accelerate the rate of production and that the technology is more cost effective than current production technology. The project is particularly interesting since the current production plant has a very high reputation and is considered as one of the industrys´best, resulting in many visits from industry colleagues.

“This agreement is a natural step forward for Arc Aroma Pure. Now, we have mainly finished our product for the biogas market. Now, Arc Aroma Pure is proceeding according to plan and explores a whole new market segment, the extraction of olive oil. The CEPT® platform is the same, but the application and the market segment is brand new. If the pilot is successful, we have an important reference that will interest the rapidly growing olive oil industry and also a possible future customer, due to the fact that there are a number of production lines in the plant that can be upgraded. I would like to thank the representatives of Tasnord SL and employees for the focused work that enabled this agreement.” Says Pär Henriksson, President of Arc Aroma Pure AB.

https://www.avanza.se/placera/pressmeddelanden/2014/10/23/arcaroma-effektivisering-av-olivoljeproduktion-i-spanien.html

  • October 24, Arc Aroma Pure announces rights issue, approximately 17.3 MSEK (press release translated and edited by C.E.S.I.)

Arc Aroma Pure will make a rights issue of approximately SEK 17.3 million and has received subscription commitments and letters of intent of approximately SEK 10.6 million, representing approximately 61 percent of the issue amount. It appears from a statement. Arc Aroma Pure’s current working capital is sufficient for the current needs over the next twelve months, but a capital contribution makes it possible to further increase sales and marketing efforts and simultaneously explore new application areas and market segments. The subscription price is 25:50 per B share. Each share carries one warrant, and 11 warrants entitle the holder to subscribe for one new share.

https://www.avanza.se/placera/telegram/2014/10/24/arc-aroma-pure-foretradesemission-ca-173-mln-kr.html

Arc Aroma Pure AB (publ.) is very active in the market and in different projects. We have chosen to release this memo to live up to our promise to be transparent and to keep our shareholders informed.

bioCEPT® deployed in Jordberga

Company bioCEPT® is now installed and commissioned at the biogas plant in Jordberga outside Trelleborg. The preliminary results are very promising and as expected. Our bioCEPT® in Jordberga will be an important demonstration facility now when we begin to receive both Swedish and foreign delegations, who expressed their interest to see the CEPT® plant in operation. The biogas plant in Jordberga is the largest and most modern plant for the production of biogas in Sweden.

bioCEPT® registered trademark

Now, the Patent Office has announced that bioCEPT® is a registered trademark. The registration is an important step in the company’s market strategy.

Marketing activities

Arc Aroma Pure representatives have visited prospective customers and partners in different market segments and in several countries. This includes visits to China, Thailand, India, Spain and the United States. We note that the hospitality is always very positive and that interest is also very large.

Successful tests in the olive oil project

Recently, the company installed a CEPT® generator, treatment chamber included, in one of the world’s leading facilities for oil production in southern Spain. The plant is probably the largest in the world and receives many visitors. The aim was to try CEPT® platform during full-scale production and to study how the technology can streamline the olive oil production.

Both the management of the facility and isiting experts were initially skeptical, but after a few hours of operation, it was obvious to everyone that the technology works. Thus, we have verified that the effect demonstrated in the laboratory is scalable. Oil quality improved significantly and the amount of high-quality olive oil that can be extracted increases by more than 10% after a CEPT® treatment. We now have a good basis for further discussions with olive oil producers and actors in the industry, discussions operated jointly with our partners TasNord.

Cooperation with AZTI Tecnalia

Arc Aroma Pure AB, while visiting Bilbao, laid the foundation for a collaboration with AZTI Tecnalia, Spain’s leading research institutes in “marinating and food”, “in the context of Sustainable”. We will cooperate with the objective of developing equipment and methods based on CEPT® technology and to help prospective customers with evaluation and decision-making.

Media attention

Pär Henriksson has been interviewed by a journalist from Helsingborgs Dagblad and Sydsvenska Dagbladet common industry editorial, 8till5 and a photographer has visited our company. On January 24  a major six slide article was published, where Arc Aroma Pure AB was highlighted with text and images. The text began with the words “The Lund Company Arc Aroma Pure was the Skåne company which had by far the strongest price performance last year. Shares traded on AktieTorget rose by 311 percent. ”

“In this memo, my colleagues and I tried to summarize some of what is happening in the company. As everyone knows, we can not tell you everything, which would violate various rules and ethics. I can summarize that the tempo is high and that we work focused. We are in the middle of the process to move from research and development to marketing and production. A process if not entirely easy, but we are going. ” Says Pär Henriksson, MD, inventor and founder of Arc Aroma Pure.


C.E.S.I. predicts that also another new application, extraction of Juice, might be announced in a near future press release (see the AAP´s hint in the previous Aug 14 2014, press release)

Note: Most of the information depicted above was obtained from http://www.arcaromapure.se

Best regards, C.E.S.I.

The author, Cutting Edge Science Invest, is an Arc Aroma Pure share holder. Cutting Edge Science Invest can not guarantee, or take into  accountability, the content of truth and accuracy of the information in this article/post.Thus, Cutting Edge Science Invest requires that a possible reader gather complimentary information if any type of investment in the company described above is considered. Cutting Edge Science Invest provides personally biased information and at best also “general information and opinions”. The article/post does not contain professional investment advice. 

I appreciate and celebrate the eco-friendly Opcon Powerbox technology. Recently, numerous press releases and multiple small orders have been announced. http://www.opcon.se/web/Press_releases.aspx

The fact that major capitalization on the Opcon technology has been “delayed” for a number of years is what made me particularly interested in this case.

Opcons 2014 technology is the result of decades of research and developent http://opcon.se/web/History_1.aspx

The company is listed on the Small Cap list of Nasdaq OMX Stockholm. No dividend has been paid.

Today, there are 379 millions of shares. In the 2010 annual report, the number of shares was 25 millions,

This equals a total net dilution factor of: 15 (end 2010 until today´s date)

Early 2010, the value of the share was ~15 SEK,

Recent week´s share price ~0.55 SEK (first week of september 2014, the last 2 day´s excluded…)

Today, September 10th 2014, this sums up to a net loss of approximately 96 % for the 2010 year´s shareholder.

Market cap early 2010 (15 x 25 million) = ~375 million SEK

Market cap 2014, recent days = ~220 million SEK (2014-09-09)

My initial conclusion, solely based on numbers:  It is not too hard to understand that many of the 2010 (or 2011 or 2012) Opcon investors, i. e. ”the old timers”, possesses a very negative view and and lack of trust for Opcon and the Opcon board members.

I do not have the time or the energy to describe what went wrong. It has already been discussed in other forums (e. g. in www.redeye.se, swedish language) but yes, I am aware of the historical events e.g. Tricorona).

Instead, let´s zoom in on the key messages of the January to June 2014 interim report (http://opcon.se/web/Reports_3.aspx)

INTERIM REPORT JANUARY–JUNE 2014

China is the key as Opcon looks to the future

  • Efforts now initiated to develop the Chinese market and parts of South East Asia and create an industrialised manufacturing base for Opcon Powerbox together with Snowman
  • Hong Kong Snowman Technology Ltd. second largest owner of Opcon following directed placement of shares
  • Savings programme now being implemented that will cut annual costs by around SEK 30 million
  • Reduced loss despite lower sales, loss after tax of SEK –4.8 million (–15.1 m)
  • Underlying operating loss for Q2 of SEK –1.0 million (–7.4 m) before non-recurring costs

First half of 2014, January–June, remaining business

  • Net sales amounted to SEK 122.3 million (136.7 m)
  • Operating loss (EBIT) was SEK –10.5 million (–21.8 m)
  • Loss after tax of SEK –11.0 million (–29.3 m)
  • Earnings per share SEK –0.03 (–0.09)

Q2, April–June, remaining business

  • Net sales amounted to SEK 54.9 million (62.7 m)
  • Operating loss (EBIT) was SEK –4.6 million (–12.3 m)
  • Loss after tax of SEK –4.8 million (–15.1 m)
  • Underlying operating loss for Q2 of SEK –1.0 million (–7.4 m) before non-recurring costs
  • Earnings per share SEK –0.01 (–0.05)

Significant events after the end of the period

  • Swedish order for delivery of bioenergy plant worth around SEK 28 million
  • Declaration of Intent signed with Snowman concerning formation of joint company to develop the Chinese market and create an industrialised manufacturing base for Opcon Powerbox
  • Order for one Opcon Powerbox ORC and one Opcon Powerbox WST from Snowman as reference equipment for the Chinese market

In a relative comparison to the previous report(s) and in my opinion, the numbers are fantastic.

Why?

Because, I believe the numbers points towards a near future transition from a negative to a positive net result, independently of major near future triggers. This attracted me. During the last days of august, I made a statement and transferred / invested ~20% of my total portfolio in Opcon. A few weeks ago, my friends and colleagues were laughing. Today, I am laughing. Hopefully, the laughter will last until I exit Opcon. I did not make the move solely based on the numbers of the report. I defined the numbers in the latest report as the receipt, confirming earlier investigations and conclusions around the Opcon activities and the technology.

Let´s dive into the full version of the latest report:

I am not an old timer, so I could relatively easy gather enough of courage to put full trust in the the following statement by the board:

“With an expanding order book, the existing cost savings programme and the plans for the formation of a JV together with Snowman in China together with other activities in China, capacity utilisation is expected to increase, and the Board expects Opcon to report positive earnings for 2014.”

http://www.opcon.se/web/Reports_3.aspx?rid=917250

Now, the full paragraph:

In Fuzhou Snowman has built a completely new factory for production of compressors developed by Opcon. It is estimated that future licensing income from Snowman’s production for the period 2014-2024 could exceed SEK 100 million. In 2013 alone, sales of compressor development to Snowman almost tripled to exceed SEK 30 million. In 2014 Snowman has placed further major development assignments with Opcon. For Opcon, Snowman’s investment and the collaboration that has begun mean that Opcon looks forward to receiving further development assignments from Snowman over a long period within industrial refrigeration compressors, an area in which Opcon is strengthening its capabilities. Furthermore, the trust earned through collaboration means that the companies are now expanding collaboration to include Opcon Powerbox. The purpose is to create a joint venture to develop the Chinese market and create an industrialised manufacturing base for Opcon Powerbox that can also be used by Opcon on other markets. Opcon considers the extension of the collaboration to have great importance and considerable potential. It can have decisive significance for Opcon’s future profitability. Another important part of the current restructuring of Opcon is the extensive changes being made within the bioenergy operation that in recent years has suffered significant losses. In recent years strong measures have been implemented, including cutting the workforce, closing development projects and achieving a new, outsourced production structure. Some of the technology has been licensed with good results.

For some time now a large programme of measures has been implemented in Sweden and abroad with the main emphasis on the bioenergy sector. As a result, Opti Energi AB, Opti Energy Group AB and Opcon Bioenergy AB are being decommissioned and wound up in Sweden. Bioenergy activities are being focused on Saxlund and an increased international focus. The parent company’s operations in Åmål are being closed down completely. The savings programme, which includes reduced personnel costs, reduced cost of external consultants, IT and administration and reduced financing costs, is expected after enlargement to yield annual savings in excess of SEK 30 million compared to 2013, with effects in 2014 expected to exceed SEK 20 million. Over the past one and a half years, major interest-bearing debts have been paid off. The Board notes that although major challenges remain, significant steps have already been taken to reduce costs, and these efforts have begun to show in financial results. In Q2 costs for remuneration to employees were around SEK 3 million lower than last year, while financing costs for the first six months of 2014 were around SEK 7 million lower than the previous year. With an expanding order book, the existing cost savings programme and the plans for the formation of a JV together with Snowman in China together with other activities in China, capacity utilisation is expected to increase, and the Board expects Opcon to report positive earnings for 2014.

My conclusions:

Positive: International focus. This is what should attract new investors (like me). Electricity is cheap in sweden. Creating value from a joint venture with Snowman should be an excellent strategy!



Negative: In the report, I sense that one final and last dilution manouver i.e. (directed) emission might take place in the near futre. If so, I estimate that the dilution factor can be ignored (based on nothing, but gut-feeling).

Update February 21: CESI no longer expects an emission based on the positive numbers in the new 

INTERIM REPORT OCT–DEC 2014 & FINANCIAL STATEMENT JAN–DEC 2014



Very interesting: What strikes me most while reading the full version of the (now old) INTERIM REPORT JANUARY–JUNE 2014 report is the fact that I cannot find any info around the activities in Australia (please correct me if I am wrong). The activities I refer to are potential activities by the Australian partner Enerji.

http://www.enerji.com.au/

This is what makes me really interested. Carnarvon have started to produce waste energy with exceeding expectations and this was announced in the end of 2013.

“On 14 November consent was received to take the system to full operating temperature of 130 degrees Celsius, and heat recovery temperature has been increased with maximum available heat being recovered from the host power station. The limited heat available from the host plant is sufficient for electricity output of around 300 kilowatts. Notably, this output has exceeded expectations in that it was achieved without fine tuning and optimisation of control settings”

http://www.proactiveinvestors.com.au/companies/news/50326/enerji-limited-producing-waste-heat-at-full-capacity-in-carnarvon-western-australia-50326.html

In my opinion, another 6 months without news from Australia is not too long period of time. The Opcon powerbox is not a 5 dollar gadget, perfectly suited for instant capitalization. My understanding of the Opcon Powerbox technology is that it simply delivers. In the near future, it should also be an attractive cost saver in the global context and – in the land down under!

And even more interestingly, why has the Enerji share price recently and suddenly climbed ~100 % ?

http://www.proactiveinvestors.com.au/companies/news/57457/enerji-resources-queried-on-price-rise-57457.html

Enerji is defining in total 5 ongoing projects in Australia : 

  • Pilbara “the Carnarvon pilot plant improvements are taken into consideration, i. e. this should be a very recent project!
  • 3 complex projects involving large industrial facilities in different regions of Australia
  • A larger scale power station project

Enerji also states that the highest priority is to establish commercial growth.

 http://www.asx.com.au/asx/research/companyInfo.do?by=asxCode&asxCode=erj (see attached pdf)

Back to the Snowman Joint venture ambitions:

“Opcon’s contribution to equity will be by a system technology license of its proprietary Opcon Powerbox ORC and WST (West Steam Turbine) technology in the Territory with certain exclusivities in China and parts of Southeast Asia. The JV will be granted exclusive manufacturing and sales rights of the Opcon Powerbox in China and exclusive manufacturing and non-exclusive sales rights for Taiwan, Thailand, Vietnam, Indonesia, Malaysia and North Korea.”

It appears like the long awaited larger orders from Asia soon might be announced. How much will a large order trigger the share price? I have no clue, but my estimate is that the old-timers (the 2010 investor´s) 96% loss will be substantially reduced. The market is global. The potential is huge. I believe the down-side is limited, primarily due to the last years historical plot of the share price combined with the recently improved financial result. I also believe a market cap around 200 mSEK is very low for this company with a mature eco-friendly Powerbox, embraced by China and ready for launch! 

Finally, the last days, insider share purchases have been reported (Mats Gabrielsson 2 million shares and Niklas Johansson 175 million shares)

Best regards, Cutting Edge Science Invest

The author, Cutting Edge Science Invest, is an Opcon share holder. 

Cutting Edge Science Invest can not guarantee, or take into  accountability, the content of truth and accuracy of the information in this article/post.Thus, Cutting Edge Science Invest requires that a possible reader gather complimentary information if any type of investment in the company described above is considered.

Cutting Edge Science Invest´s provides personally biased information and at best also “general information and opinions”.

The article/post does not contain professional investment advices.