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Monday, 08/13/2018 10:10:17 AM

Monday, August 13, 2018 10:10:17 AM

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XEBEC RECEIVES U.S. ORDER FOR A NITROGEN REJECTION UNIT (NRU) FOR DEPLOYMENT AT A LANDFILL GAS UPGRADING INSTALLATION

MONTREAL, (QC), Aug 13th, 2018 – Xebec Adsorption Inc. (TSXV: XBC) (“Xebec”), a global provider of clean energy solutions announced today that it has received a multi-million dollar landfill gas upgrading order for a Nitrogen Rejection Unit (NRU) from a U.S. based customer. The system will be delivered in Q1/2019.

Xebec has been developing and refining its landfill gas purification technology for decades, and today offers the leading edge solution for the separation of Nitrogen (N2), Oxygen (O2) and Carbon Dioxide (CO2) within a single stage Pressure Swing Adsorption (PSA) unit. This particular Xebec PSA system, customized for this landfill application, has the lowest operating and maintenance cost compared to all other NRU technologies. The system can operate in a wide range of CO2 levels, allowing full optimization of the CO2 removal process upstream of the NRU, maximizing the overall efficiency of the landfill gas upgrading plant.

Quotes:
“Xebec offers methane recovery rates of 95%+ in two-stage configurations for applications where the N2 levels are elevated and high recovery rates are important. We are very excited to have been selected by one of the largest U.S-based landfill gas-to-energy developers, since it will allow us to demonstrate our latest technology development and showcase the performance of our systems. Upgraded landfill gas to RNG is playing an increasingly important role in the deployment of low carbon fuels in transportation. We expect Xebec to be playing an important role in this transition, as we move from a fossil fuel economy to a low carbon renewable energy future.” – Kurt Sorschak, President and CEO, Xebec Adsorption Inc.

Background:
There are currently 632 landfill gas to energy projects operating in the United States. In addition, the U.S. EPA has identified over 400 candidate landfills that are suitable for landfill gas to energy or RNG projects. Xebec is estimating that approximately 120 to 160 landfills out of the total number of operating and candidate landfills (1,032) could qualify for the production of RNG, indicating a market size for upgrading equipment in the range of USD$ 1.2 to 1.6 billion.

Operational & Candidate Landfills in the U.S.(Source: [https:/www.epa.gov/lmop/lmop-national-map]www.epa.gov/lmop/lmop-national-map)

The Landfill Gas-to-Energy market is undergoing a fundamental change, in as far as Landfill Gas-to-Electricity projects are today financially challenging. Solar and wind power projects offer electricity rates as low as 1.5 cents/kWh, a rate Landfill Gas-to-Electricity projects can no longer compete with. Consequently more and more waste companies and developers are looking toward Landfill Gas-to-Fuels, especially to RNG as a low carbon fuel alternative with a much better value proposition than electricity and a significantly higher return on investment (ROI).

Xebec is utilizing its innovative, proprietary fast cycle adsorption technology for its gas purification systems. This purification technology is generating an increasing amount of customer interest, mainly due to lower initial investment costs, low operating and maintenance costs, flexible and stable performance, combined with high durability and reliability.