Five of these contracts are from the conversion of a previously announced letter of intent signed on Dec. 5, 2019 that have turned into firm purchase orders and an additional project using our large-scale BGX Solutions.
These orders confirm Xebec’s strengthening position in the U.S dairy market as farmers look towards solutions that are reliable and have the lowest lifecycle costs. Xebec’s visibility and credibility in the marketplace are rapidly increasing due to its ability to provide local service and support through its “Xebec Service Centers”, while also providing systems that consume significantly less energy in converting biogas to RNG allowing for better project profitability.
Xebec expects to deliver the projects throughout 2020 and early 2021 with gross margin in line with our historic levels.
“We’re excited to see our strengthening position in the U.S dairy market,” said Prabhu Rao, CEOof Xebec Adsorption. “Our proven expertise in deploying our PSA technology in the European dairy market is being brought to the U.S. Xebec’s RNG systems are ideal for owners and operators of RNG projects who are looking to maximize uptime and reliability while minimizing electricity costs in operating their projects. We’re happy to partner with dairy farmers across the U.S as they join the movement of harnessing their manure waste to produce renewable energy for a more sustainable future.”