Sprintex Ltd (ASX:SIX) has signed an initial A$1 million order with Dutch company MW Techniek BV (Mest Water) aimed at reducing ammonia emissions in Dutch agriculture.
Combatting agricultural emissions
The deal, the company’s largest evaluation agreement to date, provides for Sprintex to develop custom compressors for Mest Water's ammonia-reducing technology, ZLD-UP, in response to stringent Dutch ammonia emission regulations.
And there’s more – countries such as the Netherlands, Denmark, Germany, Ireland, France and Spain represent a substantial market for Sprintex and Mest Water to serve thousands of livestock farms, enhancing environmental sustainability and economic viability.
Sprintex will supply 20 compressors valued at €620,000 (A$1 million) for Mest Water’s ZLD-UP system, which processes manure into clean water and fertiliser.
An initial 50% deposit has been paid with the balance due upon delivery and completion of a 90-day evaluation period.
A letter of intent has been received for two additional models, with capacities of 500 kg/hr and 1,500 kg/hr, to be developed concurrently this year.
Mest Water intends to purchase all its system compressors from Sprintex and enter a five-year supply agreement post-successful commissioning, targeting a sales price of €19,000 (A$30,000) per compressor.
This collaboration follows a previous announcement on June 18, where Sprintex disclosed its partnership with a Netherlands-based company to address Dutch government-mandated limits on ammonia emissions. This company has recently been revealed as being Mest Water.
Circular economy approach
Mest Water’s ZLD-UP technology holds a European patent, with a global application in progress, transforming manure, slurry, sludge and wastewater into valuable resources while eliminating ammonia emissions.
The European Union's stringent ammonia emission regulations, under the National Emission Reduction Commitments Directive and the Integrated Pollution Prevention and Control directive, create significant market opportunities.
Established in 2003, Sprintex is a leading company in the engineering and manufacturing of ultra-high-speed electric motors and clean air compressors.
The company focuses on creating energy-efficient solutions for industrial and automotive applications, driving advancements in clean air technologies.
Sprintex managing director Jay Upton said: “This agreement marks a pivotal step in expanding Sprintex's reach within the European agricultural market, focusing on reducing ammonia emissions from livestock farming.
“Our compressors are crucial for enhancing the energy efficiency and economic viability of their technology.
“This collaboration unlocks substantial market opportunities in cattle and pig farms, particularly in regions with stringent ammonia emission standards.
Contributing to environmental sustainability
“We are excited to contribute to both environmental sustainability and operational efficiency in the agricultural sector.
“This agreement is expected to generate record revenues for Sprintex during FY 2024-2025 and beyond.”
MV Techniek director Arjan Mensink said: "We are thrilled with Sprintex’s commitment to providing comprehensive R&D and customised solutions for our project.
“Their ability to quickly adapt and meet our needs has been crucial in overcoming the final major challenge in bringing our ZLD-UP system to market.
“Sprintex's advanced compressors have solved a big hurdle in making our ZLD-UP system more energy efficient.
“Their technology enables us to offer farmers a complete solution, significantly reducing ammonia emissions and converting manure into valuable products.
“We are looking forward to a long-term relationship with Sprintex well beyond five years, as well as throughout The European Union."