Ariya Finergy signs framework agreement on acquisition of production line in Kenya

Ariya Finergy has signed a framework agreement with Absolicon to acquire a production line for the solar collector T160 in Kenya. The total sales value covered by the agreement is estimated at SEK 40-50 million plus a monthly license fee of 4% and sales of components. In June, a similar agreement was signed in South Africa.

Background

Absolicon has worked in Kenya since 2017, mainly in our project with the tea industry. Nordic Climate Fund (NCF) has contributed € 500,000 to Absolicon to demonstrate the solar technology in the Kericho region in collaboration with the Kenyan company Tealand.

Through contacts with the Kenya Association of Manufacturers, Absolicon has approached end customers and energy companies to create a strong team around a first production line in Kenya.

Absolicon is pleased to sign a framework agreement with Ariya Finergy regarding the acquisition of a production line. Ariya Finergy is a leader in clean energy supply to commercial and industrial clients. Ariya also works with innovative financing solutions, which Absolicon sees as a key to rapid growth.

Ariya has served industrial clients in Kenya for the past four years and has the capacity to design and finance installations with concentrating solar collectors.

Content of the Framework agreement

The framework agreement is similar to that signed with Greenline Africa in South Africa in July 2019 and describes the separate agreements that will be drawn up in the process. Absolicon sales revenue can be grouped into three categories: the purchase of the production line, license fees and revenue from sales of materials.

Sales of the production line

The production line is of the same model as Absolicon has in Sweden and which the company has already delivered to Sichuan Province. The line with two six-axis robots has the capacity to produce 50 MW solar collectors (100,000 m2) per year.

Along with the hardware, Absolicon provides consulting support for marketing work, technical support, development and technical training.

The total value of hardware and activities covered by the agreement is estimated at SEK 40-50 million.

In Kenya, Absolicon’s focus so far has been on the tea industry and especially in the Kericho district in collaboration with the cooperative organization KTDA. Absolicon has estimated that the potential for the Tea industry market is 5 GW (10 million square meter) and the tea industry is the main target for solar thermal solutions.

Ariya has in their sales work expanded the portfolio to more sectors:

• Food industry (where there are large companies such as Del Monte)
• Textile industry (that delivers to Swedish H&M, among others)
• Beverage industry (large breweries and soft drink manufacturers)

In several of the large multinational companies, there are policy decisions to reduce carbon dioxide emissions. For example, for the textile industry, H&M has stated in its procurement work that all purchases must have a net zero of carbon dioxide emissions in 2030.

Delivery time and delivery capacity

The first sales of pilot installations of the T160 in Kenya are expected during the first half of 2020. Solar collectors for these installations will be delivered from Sweden.

Inspection of the finished line in Sweden before being sent to Kenya is expected to take place during the first half of 2020. The production line is expected to be operational in Kenya during the first half of 2021.

The delivery of the production line to Kenya will be accommodated within the organization, which is now being expanded through the recruitment of five people.

More about the companies

www.ariyafinergy.com
www.absolicon.com

Absolicon is a listed Swedish solar energy company, specializing in concentrated solar heating. The solar collector T160 operates up to 160 ° C and has the highest optical efficiency ever measured for a commercially available small parabolic trough.
After achieving groundbreaking performance and delivering a first production line to the Chinese province of Sichuan, Absolicon has built a robotized production line in Sweden for demonstration for interested customers and for own production of solar collectors.

Ariya Finergy Limited is a wholly owned subsidiary of Ariya Capital Group, a developer and investor in clean and renewable energy in sub-Saharan Africa. The group operates from offices in Kenya, Namibia, Mauritius, London and the Channel Islands.

For more information:

Joakim Byström CEO of Absolicon Solar Collector AB
E-mail: joakim@absolicon.com Phone: 0611-557000