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NZ's Flotech now at the global forefront of Biogas

Media Release 29 September 2006:

New Zealand’s Flotech now at the global forefront of the commercialisation of Biogas

Pioneering South Auckland based engineered solutions company Flotech are now at the forefront of the global commercialization of Biogas following their latest international deal to deliver on a significant public project in Madrid, Spain.


Flotech, a Mangere based engineered solutions company, has sealed a significant biogas project in Madrid that is the largest deal of its kind in the world, featuring another innovative engineered solution by Flotech.

With a climbing demand for alternatives to fossil fuels because of rising costs and environmental concerns, the need for biogas to become an economically viable and realistic alternative has become urgent, not just in New Zealand, but across the world.

Director of Biogas Technology Warwick Bethall said, “Our response to growing demand has put Flotech at the centre of the Biogas industry. Flotech have engineered an innovative solution for Madrid to enable biogas to be piped to, and used directly in, a municipal gas system and for automotive fuel for Madrid public transport, which is a first worldwide.

“We also welcome the Ministry of Transport discussion paper on Biofuels that was released recently. The work that we have been doing internationally will provide a useful example of what is already achievable”, added Bethall.

Spain, like many European countries, is accelerating the process of switching to alternative fuels. The scale of the Madrid project, of which Flotech is a critical element, is worth around 100 million euros. Flotech took nearly 3 years to clinch the deal, with the reliability and innovation of their engineered solutions making the difference.

Morgan Jansson, General Manager Flotech Sweden added, “The ‘Greenlane’ system used for this project will process some 4000 cubic metres of gas an hour. This makes it the largest machine in terms of processing power in the world. To put this into some context, one cubic metre of biogas is roughly equivalent to one litre of petrol.”

Biogas carries enormous benefits. It is considerably cleaner burning than fossil fuels and can be used in any CNG powered vehicle or machine. Biogas is a renewable fuel extracted from waste, making waste disposal a more efficient and commercially beneficial venture. Biogas also captures methane before it can become harmful to the environment and converts it to usable energy. The Flotech Greenlane biogas technique not only produces clean fuel, it does so with an environmentally friendly and safe process: water scrubbing.

Jannson added, “Flotech already has the technology to make biogas a viable commercial venture, and biogas itself is already a widely available renewable energy source.”

The enormous scale means that Flotech will be committing over 20 staff to work on this project, building on their significant revenue and staff growth over the last 36 months.

Flotech has been quietly building an impressive global reputation as a customer-oriented provider of leading edge engineered solutions to the biogas, gas compression, and heat exchange industries. With more than 90% of their revenue now coming from exports, Flotech are a highly successful New Zealand business on the world stage.

In addition to the Madrid project, Flotech is involved with many other international and leading edge projects, including in Sweden, South Africa, Japan, and the Gulf of Mexico.

“We are excited about the ongoing challenge of commercialising biogas as a viable and renewable energy source, not just around the world, but here in New Zealand”, said Bethall.

--

About Flotech:

The Flotech Group consists of three business units spanning Australia, New Zealand and covering Europe from a base in Sweden. Auckland is home to the core design and manufacturing facility with approximately 60 staff.

Flotech's philosophy is to provide energy technologies that meet the requirements of modern society whilst preserving and enhancing the environment, to ensure continuous improvement by participation of every individual to the highest levels of Total Quality Management, and to remain competitive and profitable in providing for the well-being of the Company's staff, customers and stakeholders.

Since incorporation in 1986, Flotech has developed into an international industrial equipment supplier, offering solutions for

- Industrial Heat Exchange,

- Gas Purification, Drying and Conditioning

- Gas Compression

Flotech delivers custom-engineered equipment and “turn-key” skid packaged process systems.

In the Gas Compression sector, Flotech’s chief competitive strength is fuel gas delivery for power generation and transportation. Gas Treatment capability has been driven by development of biogas processing technology as an eco-friendly, sustainable and economically viable vehicle fuel.

Natural synergies have developed along with the gas processing business and Flotech is a leading provider of Heat Exchanger technology.


www.flotech.com


ENDS

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