ENGlobal Signs $20 Million-Plus Contract to Supply Modular Hydrogen Plant for Renewable Diesel Facility
November 08 2019 - 7:00AM
ENGlobal Corporation
(NASDAQ:ENG), a leading provider of
engineered modular process and automation systems, today announced
it has signed an agreement valued in excess of $20 million to
supply process modules that will be used to construct a complete
hydrogen production facility. The total sum expected under this
contract could exceed ENGlobal’s $25.8 million revenues for the
first half of 2019, with the Company’s scope of work potentially
being increased over the 18-month project duration.
ENGlobal’s compact plant will be a major
component of a grass roots renewable diesel facility with an
expected maximum production of 10,000 barrels of renewable diesel
per day. ENGlobal’s services will include engineering, detailed
design, procurement, module fabrication and automation, with other
project responsibilities such as field construction being handled
by others.
The hydrogen unit design utilizes Haldor Topsoe
technology. This highly efficient synthesis gas process
consumes approximately 20% less feed and fuel gas than conventional
hydrogen plants, and produces no excess steam, leading to
substantially lower operating costs and a far smaller carbon
footprint. It will mark the first time this innovative technology
will be used in the United States, after more than 40 successful
implementations worldwide.
“This agreement is a significant event in the
history of ENGlobal,” said Chairman and CEO William A. Coskey, P.E.
“Not only does it introduce to the U.S. market an efficient and
environmentally-friendly syngas process, it also validates our
strategic shift toward providing higher-revenue modular process
systems that utilize differentiated technology. We fully expect
this win to greatly enhance our ability to secure additional
modular systems business using this and other related
technologies.”
Mr. Bruce Williams, Senior Vice President of
ENGlobal stated, “I am proud to be part of the excellent and
mutually beneficial working relationship we have in place with
Haldor Topsoe. The jobs we are currently proposing range from
$25M to $125M and typically involve renewable fuels, refining,
chemicals and fuel cell applications. ENGlobal offers a full
range of capabilities to engineer, fabricate and automate these
plants, with each application realizing significant cost and
schedule benefits through the company’s modular execution
strategy.”
Mr. Coskey said he expected to announce details
on future contract opportunities “in the near future.”
About ENGlobal
ENGlobal (NASDAQ: ENG) is a leading provider of
engineered modular solutions to the energy sector throughout the
United States and internationally. ENGlobal operates through two
business segments: Automation and Engineering. ENGlobal's
Automation segment provides services related to the design,
integration and implementation of process distributed control and
analyzer systems, advanced automated data gathering systems and
information technology. Within the Automation segment, ENGlobal's
Government Services group provides engineering, design,
installation and operation and maintenance of various government,
public sector and international facilities, and specializes in the
turnkey installation and maintenance of automation and
instrumentation systems for the U.S. Defense industry worldwide.
The Engineering segment provides multi-disciplined engineering
services relating to the development, management and execution of
projects requiring professional engineering and related project
management services. Further information about the Company and its
businesses is available at www.ENGlobal.com.
Safe Harbor for Forward-Looking Statements
The statements above regarding the Company's
expectations regarding its operations and certain other matters
discussed in this press release may constitute forward-looking
statements within the meaning of the federal securities laws and
are subject to risks and uncertainties. Actual results and the
timing of certain events, particularly the timing, scope and amount
of this project award and its execution, could differ materially
from those projected in or contemplated by the forward-looking
statements due to a number of factors detailed from time to time in
ENGlobal's filings with the Securities and Exchange Commission. In
addition, reference is hereby made to cautionary statements set
forth in the Company's most recent reports on Form 10-K and 10-Q,
and other SEC filings.
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Contacts:
Mark A. Hess, CFO (281) 878-1000 ir@ENGlobal.com
Market Makers - Investor Relations Jimmy Caplan 512-329-9505
jimmycaplan@me.com
Market Makers - Media Relations Rick Eisenberg 212-496-6828
eiscom@msn.com
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