NVR Nviro

 

TIDMNVR 
 
RNS Number : 8983B 
Nviro Cleantech plc 
04 November 2009 
 

 
 
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| Press release                        |                  4 November 2009 | 
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Nviro Cleantech plc 
 
 
("Nviro" or "the Company") 
 
 
European Union Grant and Trading Update 
 
 
Nviro announces today the final approval for its wood fibre recycling technology 
business, Microrelease Limited, of a substantial European Union grant of up to 
Euro 785,450 to be invested as one quarter of the costs of development of a full 
scale industrial plant over a thirty month period commencing from 1st November 
2009. Part of this sum, some eighteen percent, will also support the involvement 
of partners in the project who will contribute to the process analysis and 
market data preparation demanded by the approved programme. The programme is to 
follow two phases with Phase A, a small industrial plant to enable manufacturers 
to run sufficient volume of fibre to understand the integration needs on their 
current production lines. Phase B will be a full scale recycling plant to be 
integrated in to the MDF production process to be developed together with a 
partner in the business of manufacturing MDF. Procurement of this funding will 
enable progress with major European manufacturers who have been involved with 
the programme to date and the production of additional material to extend 
successful trials of the recycled fibre in applications other than board 
production. It is expected that funding responsibility will be shared with 
partners in the industrialisation programme over the next 30 months to 
completion. 
 
 
The Company has previously announced, at the half year, the intention to 
continue to restructure the business to preserve cash and also to continue to 
develop the clean fuels business while seeking strategic partnerships to ensure 
the future growth of the business. The exercise to reduce overhead and control 
the run rate tightly was substantially complete by August this year, but 
continues to be closely monitored. As the business stands today, operations can 
continue with current overhead levels through to the end of the financial 
year ending 30 September 2010 while the development programme and the strategic 
partnering discussions are progressed. At the year end and after the clearance 
of the more substantive obligations from the Vertus Cincinnati project earlier 
in the year cash stood at approximately GBP3m. 
 
 
In the meantime the completion of the extensive programme of fuels testing 
referred to in the July 2009 trading statement has also enabled the clean fuels 
business to go back out to the market and reopen discussions and create new 
opportunities with prospective clients based on the strengthened technology 
portfolio. These discussions are currently continuing positively with targets in 
Asia, Europe and the USA who are in a position to fund clean fuels projects. In 
parallel, negotiations also continue with prospective strategic partners, 
referred to in earlier releases, who remain the focus of sustained activity to 
reach a mutually effective way forward. 
 
 
The programme to partner the two air projects slowed during the last half of 
2009 due to the focus on restructuring the business overall, but this has now 
re-emerged as a current activity. The delay did allow the completion of some 
further testing of both the Organotect and Laseair units and resulting 
additional positive performance data. The process of presenting and 
demonstrating the value in these technologies to selected potential partners or 
acquirers is now recommencing. 
 
 
Chief Executive Chris Every said, "We continue to follow closely the plan we 
outlined at the half year and that has required a period of diligent internal 
activity by the Nviro team along with continuing negotiations with third parties 
to achieve a strategic strengthening of the business. Progress continues to be 
positive and we are delighted that the successful trials and production program 
for Microrelease have been able to attract this funding to enable us to move to 
the next stage of commercialisation in the wood fibre market. We look forward to 
bringing more news on the other areas of the business overall in due course." 
 
 
For further information: 
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| Nviro Cleantech plc                   |          Tel: +44 (0) 20 7451 2473 | 
|                                       |            www.nvirocleantech.com  | 
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| Chris Every, Chief Executive Officer  |         cevery@nvirocleantech.com  | 
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| Grant Thornton Corporate Finance -   |          Tel: +44 (0) 20 7383 5100 | 
| Nominated Adviser                    |                                    | 
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| Gerry Beaney / Robert Beenstock      |            www.grantthornton.co.uk | 
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| Fairfax I.S. PLC                     |          Tel: +44 (0) 20 7598 5368 | 
| Broker                               |                 www.fairfaxplc.com | 
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| Ewan Leggat                          |              eleggat@fairfaxis.com | 
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This information is provided by RNS 
            The company news service from the London Stock Exchange 
   END 
 
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