Sabien Technology Group PLC (AIM:SNT) has forecast it could earn US$1mln in commission for each system built as part of a regenerated green oil (RGO) system agreement struck between its 33%-owned special purpose vehicle b.grn Group Ltd and its South Korean partner City Oil Field Inc (COF).
In an update on the deal, Sabien, which specialises in CO2 reduction technology, said a binding contract has been signed for the supply of the first COF RGO system to the UK.
According to a statement, b.grn has begun the process of securing and funding the development of a site for the first system, with an area in the Midlands currently being of interest.
Sabien said the completion of the agreement is “probable” and could occur within the next 18 months.
Under its sales agency agreement with COF, Sabien will earn US$1mln in commission on the first system installation and on each subsequent installation.
Richard Parris, Sabien chairman, said: "The signing of the agreement followed a successful visit by executives from COF and the Korean Environmental Corporation to the UK on 24-26 October.
“After meetings in the Palace of Westminster, a dedicated Trade Summit, visits with Cambridge and Birmingham Universities, engagements with city councils and the inspection of a target site, the parties to the contract agreed that the time was right to move from a discussion phase to the start of business execution.”