Friday, January 14, 2011

Xebec Announces Memorandum of Understanding For the Development of Biogas Upgrading Projects in China

Xebec Adsorption Inc. ("Xebec"), a provider of biogas upgrading, natural gas and hydrogen purification solutions for the clean energy market, announced today that it has signed a Memorandum of Understanding (MOU) with Anyang Yinshang Ltd. (“Yinshang”) for the development of biogas upgrading projects in China.

Under the terms of the MOU, Yinshang will use its best efforts to purchase up to 5 biogas upgrading systems from Xebec within the next 24 months, and commits to issue a binding purchase order for the first upgrading plant by March 31, 2011.

“Yinshang manages and operates organic waste treatment facilities, and is affiliated with a leading private developer and operator of compressed natural gas (“CNG”) fueling stations in Henan Province. Yinshang has recently begun to develop clean energy projects by converting biogas to renewable CNG. These alternate sources of CNG provide an independent, renewable and distributed source of CNG in areas that are not served by China’s limited natural gas pipeline infrastructure” said Andrew Hall, Xebec Vice President of Asia Pacific.

In addition to biogas upgrading from organic waste sources, Yinshang and Xebec have committed under this MOU to explore opportunities in the Coal Mine Methane (CMM) and landfill gas (LFG) upgrading segment. For both of these market segments Xebec offers advanced gas purification systems and sees significant market potential in China.

Delivery of the first plant under this MOU is expected to take place at the end of 2011. Further terms of the agreement were not disclosed.

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