Company: Absolicon Solar Collector
Ticker: $ABSL
List: Spotlight Sweden
Market cap: 340 MSEK = $36 MUSD at time of publication
Share price: 139 SEK = 14,79 USD at time of publication
Industry: solar thermal heating/ district heating
Market size: $223 billion$ by 2026
ESGFIRE comment: Our top picks in the solar thermal heat industry Absolicon Solar collector today announced that they will receive payment of 106 000 USD as part of the framework agreement of purchasing the first production line i North America. One production line equals revenues of 4-5 MUSD with 2-3 MUSD reccurent revenue. We are very positively surprised to see that it is the Canadian partner Phoenix Solar Thermal who are the first to put a down payment for this out of all the 18 framework agremeents signed by Absolicon. The total sales pipeline for non-reccurring revenues for Absolicon now totals $93 MUSD (850 MSEK) assuming all are finalized . The total license agreement fees for these framework agreements (if all are finalized) now totals$7,5 MUSD (68 MSEK) annually. There is also additional potential reccuring revenues in supply sales from patented components that can only be purchased from Absolicon by their framework agreement partners. The potential reccurring revenues now totals approximately $75 MUSD (680 MSEK)if all agreements are finalized . Absolicon have recently stated they expext 2-4 framework agreements will convert to real agreements at latest in Q2 2022.
Phoenix Solar Thermal in Canada pays SEK 1 million as part of the framework agreement for the acquisition of North America’s first production line (Cision)
As part of the framework agreement for the acquisition of a robotized production line for concentrating solar collectors, Phoenix Solar Thermal Inc. (“Phoenix”) pays SEK 1 million. This means that Absolicon is now ordering robots and electronic components to deliver a production line to Canada.
Absolicon and Phoenix in Canada have on 2nd of November 2021 signed a framework agreement on the acquisition of a robotic production line for concentrating solar collectors in Canada. The robotic production line has the capacity to produce one solar collector every six minutes, equal to 100,000 square meters of solar collector per year.
Since the agreement was signed, the companies have been working together to develop the Canadian solar heat market with a focus on heat for industries. Phoenix is an affiliate to CEM Engineering (the “CEM Group”), which is 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. Building up on CEM Group’s extensive network of contacts at industrial companies, Phoenix has successfully created a pipeline of potential customers for solar collectors.
As part of the framework agreement, Phoenix pays SEK 1 million towards a bank guarantee. The payment means that Absolicon is now ordering robots and electronic components to deliver a production line to Canada.
Canada has a potential market for 10 million square meters of solar collectors, which is equivalent to 5 GWth with an installation value of about SEK 20 billion that would reduce greenhouse gas emissions by the equivalent of 3 million tons of CO2.
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