Xebec Announces $113.5M Order for CO2 Capture and Sequestration Equipment with Summit Carbon Solutions

Rhea-AI Summary

Xebec Adsorption Inc. has secured a significant contract valued at USD113.5 million with SCS Carbon Removal LLC, a subsidiary of Summit Carbon Solutions. The contract involves the provision of 51 carbon dioxide (CO₂) reciprocating compression packages for what aims to be the world’s largest carbon capture and sequestration project. This deal follows a memorandum of understanding previously signed in March 2022, showcasing Xebec's expanding role in sustainable gas technologies.

Positive

• Contract valued at USD113.5 million signifies strong demand for Xebec's technology.
• Partnership with Summit Carbon Solutions reinforces Xebec’s position in the carbon capture market.
• The project aligns with global decarbonization efforts, enhancing Xebec's brand value.

Negative

• None.

- Binding contract to supply large-scale CO₂ compression equipment for world’s largest carbon capture and storage project -

MONTREAL--(BUSINESS WIRE)-- Xebec Adsorption Inc. (TSX: XBC) (“Xebec”), a global provider of sustainable gas technologies, is pleased to announce today that its subsidiary Xebec Systems USA LLC, has signed a contract valued at USD113.5 million (CAD143.2 million) with Iowa-based SCS Carbon Removal LLC, a subsidiary of Summit Carbon Solutions. The contract follows a previously announced MOU signed on March 28, 2022, for 51 carbon dioxide (CO₂) reciprocating compression packages. This equipment will be used for Summit Carbon Solutions’ proposed carbon capture and sequestration project, which is expected to be the largest in the world if approved. This contract represents showcases Xebec’s expanding technology portfolio for carbon capture and sequestration.

“We are pleased to be a key supplier to Summit Carbon Solutions’ project for decarbonization,” stated Jim Vounassis, President and CEO of Xebec Adsorption Inc. “With this important order, we look forward to helping bring this CO2 pipeline to fruition and playing our continued part in the global energy transition,” he added.

The equipment will be manufactured at Xebec Systems USA’s (formerly UECompression) Colorado facility.

Related links:
https://www.summitcarbonsolutions.com/
https://www.xebecinc.com

About Summit Carbon Solutions
Summit Carbon Solutions seeks to lower greenhouse gas emissions by connecting industrial facilities via strategic infrastructure to store carbon dioxide safely and permanently in the Midwestern United States. For more information, visit: www.SummitCarbonSolutions.com.

About Xebec Adsorption Inc.
Xebec is a global provider of clean energy solutions for renewable and low carbon gases used in energy, mobility and industrial applications. The company specializes in deploying a portfolio of proprietary technologies for the distributed production of hydrogen, renewable natural gas, oxygen and nitrogen. By focusing on environmentally responsible gas generation, Xebec has helped thousands of customers around the world reduce their carbon footprints and operating costs. Headquartered in Québec, Canada, Xebec has a worldwide presence with nine manufacturing facilities, seventeen Cleantech Service Centers and four sales offices spanning over four continents. Xebec trades on the Toronto Stock Exchange under the symbol (TSX: XBC). For more information, xebecinc.com.

Cautionary Statement
This press release contains forward-looking statements within the meaning of applicable Canadian securities law. These statements relate to future events or future performance and reflect the expectation of Management regarding the growth, results of operations, performance and business prospects and opportunities of the Corporation or its industry. Forward-looking statements typically contain words such as “believes”, “expects”, “anticipates”, “continues”, “could”, “indicates”, “plans”, “will”, “intends”, “may”, “projects”, “schedules”, “would” or similar expressions suggesting future outcomes or events, although not all forward-looking statements contain these identifying words. Examples of such statements include, but are not limited to, statements concerning: (i) that the whole project will be commissioned as noted in this press release.

These statements are neither promises nor guarantees but involve known and unknown risks and uncertainties that may cause the Company’s actual results, level of activity or performance to be materially different from any future results, levels of activity or performance expressed in or implied by these forward-looking statements. These risks include, generally, risks related to the ability of the Corporation to execute its strategy, operating results, purchasing third party supplies for key materials and components in a timely and cost effective basis, industry and products, technology, competition, ability to attract and retain qualified personnel, ability to manage successfully the anticipated expansion of our operations, the economy, the sufficiency of insurance and other factors which are discussed in greater details in the most recent quarterly management discussion and analysis (“MD&A”) and in the Annual Information Form of the Corporation filed on SEDAR at www.sedar.com.

Forward-looking statements contained herein are based on a number of assumptions believed by the Corporation to be reasonable as at the date of this press release, including, without limitations, assumptions about trends in certain market segments, the economic climate generally, the pace and outcome of technological development, the identity and expected actions of competitors and customers, the value of the Canadian dollar and of foreign currency fluctuations, interest rates, the anticipated margins under new contracts awards, the state of the Corporation’s current backlog, the regulatory environment, and the procurement of key material and components of products. If these assumptions prove to be inaccurate, the Corporation’s actual results may differ materially from those expressed or implied in the forward-looking statements. The forward-looking statements contained herein are made as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. Except to the extent required by law, the Company undertakes no obligation to publicly update or revise any forward-looking statements contained herein. Readers should not place undue reliance on forward looking statements.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220412005913/en/

Investor Relations:

Xebec Adsorption Inc.

Brandon Chow, Director, Investor Relations

bchow@xebecinc.com

+1 450.979.8700 ext. 5762

Source: Xebec Adsorption Inc.

FAQ

What is the significance of Xebec's contract with SCS Carbon Removal LLC?

The contract, valued at USD113.5 million, positions Xebec as a key supplier for the proposed largest carbon capture project in the world.

When was the memorandum of understanding signed between Xebec and Summit Carbon Solutions?

The memorandum of understanding was signed on March 28, 2022.

What does the contract with Summit Carbon Solutions entail for Xebec?

Xebec will supply 51 carbon dioxide (CO₂) reciprocating compression packages for Summit's carbon capture and sequestration project.

Where will the equipment for the contract be manufactured?

The equipment will be manufactured at Xebec Systems USA’s facility in Colorado.

What is the stock symbol for Xebec Adsorption Inc.?

Xebec Adsorption Inc. trades on the Toronto Stock Exchange under the symbol XBC.