Sprintex Ltd (ASX:SIX) has secured a Strategic Procurement and Cooperation Agreement with Chinese Nanjing RGE Membrane Tech Co Ltd to develop and supply standalone air supply systems used in the water treatment industry in China.
RGE is a specialist water treatment membrane bioreactor and water treatment system company, with product sales and services marketed to all provinces of China.
The three-year agreement will involve a design collaboration between the two companies, with Sprintex customising and developing a series of standalone high-speed centrifugal compressor systems for use in the water treatment Industry.
The units will cover ratings of 10 kilowatts to 60 kilowatts and will include Sprintex-Aeristech compressor and controller technology along with other set requirements.
A market hungry for efficiency
“We are excited to cement the first industrial customer for our newest division," Sprintex managing director Jay Upton said.
"Whilst the clean energy market is providing many opportunities for the future, the agreement with RGE is a major step forward in the company’s expansion into the electric compressor market and provides an entry and a secure foothold into more mature industrial markets, that are hungry for the efficiency improvements that we can offer.
“Every efficiency improvement in an industrial process is a benefit that goes straight to the bottom line, so we are expecting to see more demand from the industrial sector as more companies become aware of our enhanced efficiency proposition for clean air compressor applications.”
Agreement overview
Sprintex recently established a research and development facility in China. Since then, the company has been pursuing commercial applications for its products for clean industrial air and hydrogen fuel cell sectors.
The agreement with RGE is Sprintex’s first in the industrial air sector and additional opportunities are being pursued.
Agreement overview:
- Sprintex will supply a minimum of 400 units (of mixed models) over a two-year initial term, 100 of which must be purchased in the first year and 300 in the second year;
- Minimum contract value of RMB 30 million (approximately A$6.3 million) over the first two years of the initial three-year term; and
- First deliveries to be completed in Q1 2022, with an RMB500,000 (A$100,000) advance payable against first-quarter deliveries. Quarterly minimums apply.
RGE executive director Baochang Zhou said: “A high-speed electric centrifugal compressor is the ideal solution for water aeration applications.
"Replacing the traditional roots-type compressors with Sprintex eCompressors in a medium-size (320kw) water treatment site, will save about 500,000kWh electricity annually for our customer, cut 375 tonnes of CO2 emissions and save about RMB500,000 (A$104,000) in costs in the process.
"We also note that the Sprintex compressor system features water-cooling and smart control, which makes it over 20% more efficient and reliable than the compressors we have been using.”
About the company
Sprintex is a clean air compressor engineering, research, product development and manufacturing company. Sprintex designs and manufactures electric and mechanically driven clean air compressors for use in a wide variety of applications, including:
- Combustion engines where Sprintex sells Sprintex® twin-screw superchargers, and supercharger systems incorporating the Sprintex® twin-screw supercharger, in the automotive aftermarket and original equipment manufacturer (OEM) market in Australia, Asia, Africa, the Middle East and the United States of America;
- Hydrogen fuel cells, which require a constant flow of oxygen-rich air; and
- Industrial oil-free clean air applications, including waste-water treatment.