December 23rd, 2022

Phoenix Solar Thermal Inc., a CEM Company, has finalized the purchase of an Absolicon production line for operation in Canada, for a value of $5.8 million dollars. This production line will enable the local automated production of Absolicon’s patented T160 solar collectors, which creates added value such as expedited delivery cycles, economical pricing and locally adapted solutions. The sale includes a pilot installation of 660 m2 for hot water application. Startup of the production of solar collectors in the Niagara Region in Ontario, Canada is planned for 2024. This purchase represents a major step for PST in its goal to serve the Canadian and North American industrial markets as a turn-key solution provider for solar thermal and emission reduction applications.

Phoenix Solar Thermal has on 2022-12-23 published a press release on the purchase of a production line from Absolicon.

Phoenix Solar Thermal Inc. (PST) now proceeds with the full purchase valued at $5.8 million dollars for an Absolicon production line with exclusive rights for marketing, production, and distribution of Absolicon’s solar thermal collectors in Canada. This purchase includes a pilot installation of 660 m2 for a hot water application. Production of solar collectors, planned to be located in the Niagara region in Ontario, is planned for 2024.

“The sale of an Absolicon production line to Canada shows that the demand for renewable and secure energy supply is global”, says Joakim Byström, CEO of Absolicon.

In November 2021, Absolicon and PST signed a framework agreement on the acquisition of a robotic production line for producing solar collectors in Canada. As part of this agreement, PST has paid $145,000 towards a bank guarantee in the beginning of 2022.

“Phoenix Solar Thermal has successfully developed the Canadian market since we signed the framework agreement and has created a pipeline of potential customers for solar collectors. The Absolicon production line will enable these companies to take part in the transition to clean energy in a faster and cheaper way”, says Carlo Semeraro, CSO, Absolicon.

PST is part of the CEM Group, a family-owned thermal power project delivery group of companies focused on engineering consulting, project development, and construction of custom engineered thermal energy systems throughout North America.

“Over the last 20 years, the CEM Group has built a reputation for successful delivery of thermal power projects through excellence in project development, engineering, and construction. As a member of the CEM Group, PST will focus on the development, financing, engineering, and construction of solar thermal projects for industrial and institutional thermal energy users”, says Matt Lensink, the CEO of CEM and the Founder of Phoenix Solar Thermal.

PST will be focused on supporting client decarbonization strategies through the integration of solar thermal collectors to their industrial and institutional facility applications. As a complete turnkey project, PST will cover the entire project needs, from Feasibility Studies to final engineering design, installation and commissioning. PST will also be ready to provide the same total turnkey solution in an Energy-As-A-Service model.

Solar heating market

Half of the world’s energy usage is heat, and industries consume huge amounts of fossil fuels to heat their processes. The market for large-scale solar heat is estimated by the International Renewable Energy Agency IRENA to measure at 800 billion euro in investments in industry by 2050.

Absolicon has a unique technology, based on 20 years of research, to extract energy from the sun with concentrating solar collectors. The investment in Absolicon solar heating becomes competitive through local production, limiting transport costs and enabling an adaptation of material choices to the conditions and supply in the local market. The price is also optimized by the solar collectors’ patented design, which allows for mass manufacturing and production of solar collectors using Absolicon’s semi-automated production line with the capacity to produce one finished solar collector every 6 minutes.

“Establishing local production for Absolicon’s T160 solar thermal collectors using their advanced semi-automated production line will add a unique capability to the Canadian manufacturing market. PST is well positioned to serve industrial energy users by leveraging its market network access and its strategic location”, says Mohammed Murad, PST’s General Manager.

The potential market in Canada, for a production line producing Absolicon T160 Solar collector amounts to 10 million sqm, equivalent to 2 million solar collectors or 5 GWth, reducing CO2 emissions in the industrial sector in Canada by replacing the use of fossil fuels with clean thermal energy from the sun.

“We are excited to achieve this milestone with Absolicon. Early feedback from our North American clients has proven a strong interest in applying solar thermal technology towards meeting their decarbonization goals. In the past 9 months we have built a robust pipeline, representing a potential for 151,000 m2 of T160 Solar collectors from various industries and District Energy clients”, says Ed Korevaar, PST’s Director of Business Development.

The largest market segments for Absolicon’s solar collector technology include:

• Food & Beverage

• District Energy

• Automotive

• Pulp & Paper

• Mining

• Chemicals

Next steps

On signing the purchase, the subscription fee of $145,000 made by PST under the framework agreement will be converted to a non-refundable payment. Residual payment of the balance will start within 9 months from first payment following PST having proven its ability to finance the purchase of the production line.

Absolicon expects to deliver the production line within 10 months following second payment. Production of solar collectors in Canada is planned for 2024.

Phoenix Solar Thermal Inc, is part of CEM Group, a family-owned thermal power project delivery group of companies that is focused on engineering consulting, project development, and construction of custom engineered energy systems throughout North America.

Absolicon Solar Collector AB (publ) was founded in 2005 as a research and development company in solar technology. Today, Absolicon is a listed company with more than ten years of operational experience from all parts of the world. Absolicon specializes in providing tools for the transition from fossil fuels, providing a profitable, easy-to-install and emission-free energy solution using solar thermalinstallations as well as complete robot production line for the solar collectors.