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Greenline Africa signs framework agreement on acquisition of production line in South Africa


Greenline Africa has signed a framework agreement with Absolicon (Sweden) for the acquisition of a production line for the solar collector T160 in South Africa. The total sales value covered by the agreement is estimated at approximately  € 4 million plus a monthly license fee of 4% and the sale of components. 

Following positive signals from industrial customers recognizing the need to improve their security of affordable electricity supply, Greenline Africa has signed a framework agreement with Absolicon Solar Collector AB on the acquisition of a local production line. The production line will initially assemble and later manufacture Absolicon’s concentrating solar collectors.

International learning, direct local benefit

The South African production line will be of the same model as already introduced by Absolicon to the Sichuan province with the capacity to manufacture 100,000 m2 solar collectors per year. Absolicon also supplies consulting support for marketing work and technical training. Local employees receive training in operating the production line while local sales personnel and technicians receive training in projecting solar collector installations. The partnership will thus result in local manufacturing investment as well as job creation.
The solar collector T160 is designed to produce heat and steam for industries and for district heating networks. The T160 has the world’s highest measured optical efficiency for parabolic solar collectors and is the only one in the world with the quality certification SOLAR KEYMARK.
Through the agreement, Absolicon ensures GreenLine Africa access to patented components and high-quality inputs that will initially be partly manufactured in South Africa. At full production, it is envisaged that 70% of the required components will be sourced from GreenLine Africa’s own local subcontractors.

Sales of process equipment from Solar ++

In addition to sales from Absolicon, it is also likely that Saravanos Solar++ AB, which is 50% owned by Absolicon, will supply process equipment to the solar heating installations. Solar++ first product is a solar powered evaporator, an example of process equipment that is in demand by dairies and pharmaceutical companies.

Absolicon’s investment in the South African production line

Combined with the sale, and in order to support GreenLine Africa’s South African financing efforts Absolicon has taken up the opportunity to enter as a minority shareholder with ownership in the production line and has signed a framework agreement with GreenLine Africa to the value of € 1M.

Industry sectors that have shown interest in South Africa

The energy market in South Africa is changing rapidly. Given historically low electricity tariffs energy intensive industries, mixed-use buildings, hospitality and leisure industries alike have relied on coal or gas supply for their heat and steam requirements. Electricity prices have however, risen sharply in recent years, often in combination with extended power outages. The need for secure, affordable supply in South Africa is growing.
National and corporate policies associated with reducing carbon dioxide emissions add further imperative to the need to transition away from fossil-based power. Finally, the direct economic potential associated with embedded, job-creating renewable power investment is self-evident. Payback periods are declining, more so when local assembly and manufacturing become possible.

Anticipated growth for the local production line

The first sales of pilot installations of T160 in South Africa are expected during the second half of 2019. Solar collectors for these initial installations will be supplied from Sweden. The local production line is expected to be operational in South Africa during the second half of 2020.
GreenLine Africa
GreenLine Africa, a newly formed South African company, has a small team of South African market experts with collective experience of 30 years in sustainability. The company specialises in matching the most innovative renewable technologies to the most pressing energy needs in society. Over the past five months, GreenLine Africa has introduced Absolicon to the South African market, including Industry and financiers interested in investing in a local production line.
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