VIK:CC - Avila Energy Corporation announces the Launch of its Vertically Integrated Energy Business Targeting its first Direct-to-Consumer Energy Sales in North America in 2023 and Net Zero Tier 3 (Scope 3) CO2 Emission Energy deliveries by 2027
(TheNewswire)
Calgary, Alberta – TheNewswire - November 14, 2022 – Avila EnergyCorporation (“Avila Energy” or the “Company” or “Avila”),trading symbol ( CSE:VIK.CN ) , announces thelaunch of its Vertically Integrated Energy Business, targeting itsfirst Direct-to-Consumer Sales in North America in 2023 and Net ZeroTier 3 (Scope 3) CO2 Emission Energy deliveries in 2027.
Avila Energy’s investments to date in the VerticallyIntegrated Energy Business is projected to generate gross sales of upto $25 million in 2024 and to establish the Company’s capacity togenerate recurring energy revenues of approximately $60 millionannually, generating gross margins of up to 40%. The VerticallyIntegrated Energy Business is projected to be 25% of the projectedannual revenues of the Company in 2024.
Based on presales received in 2023 and 2024, theCompany has an established a plan to ramp up from an initial capacityof 10,000 new customers per year to a capacity to add up to 50,000customers annually by the end of 2026.
The launch of Avila Energy’s “Vertically IntegratedEnergy Business” is supported by over 10 yearsof investment in research and development, including a 5 (five)million Euro cash investment in MICRO TURBINE TECHNOLOGY (“MTT”) B.V., aleader in Micro-turbine Combined Heat and PowerTechnology. See: https://www.mtt-eu.com/ and https://www.enertwin.com .
MTT’s product is named the “EnerTwin” (the “ EnerTwin ”).
The EnerTwin is certified byKIWA (the “KIWA Certification”) in the Netherlands.
See: https://www.kiwa.com/en/ .
Pursuant to the Certification, the EnerTwin is approved for sales within the European Union and Britain,and by extension, to numerous additional countries in Europe, theMiddle East and Africa.
Based on the order intake in 2022 by MTT of the “ EnerTwin”, Avila Energy determined that MTT has resoundinglydemonstrated, that Avila’s vision for the “ Vertically Integrated EnergyBusiness” which is the foundation Avila Energysought to be in place to launch the division, preparations formanufacturing, and its Direct-to-Consumer Energy presales, of itsintegrated, environmentally responsible low carbon energy products inNorth America is on budget and ready to be implemented.
Avila Energy has obtained from MTT the preferredlicensing rights to manufacture, sell, lease, and service the “EnerTwin” in Canada and the United States(the “ LicensingRights ”), a market estimated by MTT and AvilaEnergy to exceed 90 million potential customers.
While the Canadian Standards Association (CSA)completes its review of the application submitted by the Company forapproval of the EnerTwin and their review ofthe KIWA Certification in support of this application for CSAcertification of the “EnerTwin” product linein Canada, the Company is positioning itself to commence manufacturingand initial deliveries in late 2023 in Canada for 2024.
Upon the receiving CSA approval, the sale anddistribution of the “EnerTwin” in the UnitedStates is automatically approved by way of the agreements betweenCanada and the United States.
“Obtaining the Licensing Rights is in furtherance ofAvila Energy’s vision to launch its Vertically Integrated EnergyBusiness, and Direct-to-Consumer Sales potential; which is expected tohave Avila Energy become a leading standard within the energytransition underway in North America; that is already beingenthusiastically embraced by our employees and several ourshareholders.” stated Leonard Van Betuw, Avila’s President & CEO.
“Avila Energy’s launch of its Vertically IntegratedEnergy Business based on MTT’s proven technology of the EnerTwin is an opportunity to strengthen Avila’s activities in thefield of integrated energy supply to energy consumers with a high-techmicro-CHP generation system. The growing collaboration complementsAvila’s portfolio in the most meaningful way possible and is areassuring step towards its vision of delivering a verticallyintegrated energy solution. Further, the owned and operated assetsof Avila provide a sound and reliable long-term source of energy toconsumers, and we are very pleased to be launching in 2022 our “Vertically Integrated Energy Business” with the support of our highly competent licensor, MTT.
The highly efficient decentralized power and heatgeneration provided by the “EnerTwin” is only thestart. Avila is enthused by the performance of MTT’s product, the3.2 kWe, its proven base-line product, the continuous duty micro-CHPunit (the EnerTwin ), and excited to be the licensee ofMTT to produce and distribute the EnerTwin in North America. Avila looks forward to deepening oursustainable energy competence with MTT in the future.” said LeonardVan Betuw.
“We at MTT are excited to welcome Avila as strategicpartner. Partnering with Avila is perfectly in line with MTT’scontinued expansion into providing its high-end micro turbinetechnology to a global market. We were extremely impressed withAvila management’s strategic approach towards low-cost carbonneutral energy supply and discovered great synergies. With anever-increasing global demand for sustainable energy supply, we areexcited with the opportunity to help Avila’s customers in NorthAmerica make their power, heat, and cooling consumption suitable forthe future of reducing carbon emissions. In addition, the investmentof Avila in MTT is supporting the scale-up of production anddistribution of MTT’s EnerTwin solution within theEuropean Market,” said MTT’s CEO Willy Ahout.
Avila Energy Corporation’srationale for the Launch of the
Vertically Integrated EnergyBusiness
Avila Energy is committed to deliveringDirect-to-Consumer Energy solutions that are both environmentallyresponsible and financially sustainable, in accordance with Avila’svision of “Empowering Life with Confidence”
Upon completing the initial ramp -up of the VerticallyIntegrated Energy Business by Avila Energy in 2024, the DirectConsumer Energy solutions offered by Avila are anticipated to (forevery 1,000 customers brought on-line by Avila) result in thereduction of up to 20,000 tons annually in collective Tier 3 (Scope 3) CO2emissions; based on current estimates for North American consumers of16 tons per year per person.
See: CO2 Emissions per Capita- Worldometer (worldometers.info)
The Company is projecting to install its first 50,000 “EnerTwin” units in Canada and the UnitedStates, a market estimated by Avila Energy to exceed 90 millionpotential customers by the end of 2025. By the end of 2026, theCompany projecting to be adding 50,000 customers annually from no lessthan 5 regional distribution and service offices in North America forits manufacturing, distribution, and services.
“The economically sustainable delivery of CarbonNeutral to Net Zero Energy Sales by 2027 of vertically integratedNatural Gas and Oil products has been the goal and driving force ofAvila Energy Corporation’s vision since its inception. TheIntegration of the Company’s current and future proven and probableproduction, resources, and engineering, in combination with itsrelentless focus on the issues related to the installation ofequipment for Tier 1, 2 (Scope 1,2) and more importantly thefinancially viable introduction of Direct-to-Consumers sales toaddress Tier 3 (Scope 3) Emissions results in the factthat the Company is now positioned to launch in 2022 its VerticallyIntegrated Energy Business . The integrated deliveryof energy to consumers’ homes and places of business in the21 st Century is the foundation of the Company’s mission to become aleading producer recognized worldwide as a supplier of environmentallyresponsible energy to consumers.” said LeonardVan Betuw, President & CEO of Avila Energy.
As part of Avila’s vision (in its view, corporateresponsibility) to offer Net Zero Energy by 2027, the Company’s firststage is scheduled to fully be implemented in2024, this stage being the demonstration of the Company’s ability tobe sustainable and financially profitable as an integrated low-cost Carbon Neutral Energy Producer that addresses our obligation as a conventional energyproducer of natural gas and oil to manage and overcome the Company’sTier 1 and 2 emissions. This is to be achieved within the upstreamdivision of Avila’s business through the integration of itsextraction and production activities with the installation of anindependently commercially viable power generation with the integratedcarbon capture of associated emissions to be sequestered in theCompany’s energy fields in West Central Alberta.
Avila Energy’s, second stage is to offer the “ EnerTwin ” in combinationwith integrated engineered products through its Vertically Integrated EnergyBusiness in quantity by 2024; setting that stagefor the Company to deliver consumers a proven (24/7) commercial offgrid solution that has the estimated capacity to reduce averagehouseholds Tier 3 (Scope 3) Emissions by 40% (See: Note 1); delivering electricity,heating and cooling, including rapid charging for fully electric andchargeable hybrid vehicles.
Avila Energy’s third stage is upon reachingcritical mass of over 250,000 installed customers, Avila will alsoprovide the option to customers to convert to Avila’s developinghydrogen fueled solution; anticipated to be available commercially in2027; which would result in a further reduction of the consumersenvironmental CO2 footprint towards 0 (“zero” or“nil”).
About Avila Energy Corporation
The Company is an emerging CSE listed corporationtrading under the symbol (‘VIK’), and in combination with anexpanding portfolio of 100% Owned and Operated oil and natural gasproduction, pipelines and facilities is a licensed producer, explorer,and developer of energy in Canada. The Company, through theimplementation of a closed system of carbon capture and sequestrationand an established path underway towards the material reduction ofTier 1, Tier 2 and Tier 3 emissions, continues to worktowards becoming a VerticallyIntegrated low-cost CarbonNeutral Energy Producer. The Company continues to grow and achieve its results by focusingon the application of a combination of proven geological, geophysical,engineering, and production techniques.
About Micro Turbine Technology(MTT )
MTT is a high-tech scale-up company located inEindhoven, the Netherlands, that developed a patented micro turbinetechnology to be used in several applications. The first applicationhas been the development of the EnerTwin micro–Combined Heat Powersystem, a small high end 3,2kWe power plant for domestic and SMEapplications. Because of its very high efficiency the EnerTwin can beclassified as clean tech product. It operates on Natural gas,(Bio)LPG, Green gas, Biomethane or a gas mixture containing at presentup to 23% of Hydrogen, to be increased to 100% Hydrogen expected to becommercial by 2027, offering a future proof solution for the energytransition. MTT has invested the new capital from Avila in the ramp upof operations at of its owned and operated production facilities inEindhoven to facilitate the increased sales and distribution of theEnerTwin in the European market.
For further information, please contact:
Peter Nesveda, Vice President of Corporate Affairs andInvestor relations, peter@intuitiveaustralia.com.au
or Leonard Van Betuw, President & CEO, leonard.v@avilaexpl.com
Leonard B. Van Betuw
President & CEO
Note 1 - CO2 Emissions per Capita- Worldometer (worldometers.info)
Abbreviations
bbls/d - barrels per day
boe - barrels of oil equivalent
boe/d - barrels oil equivalent per day
NGLs - Natural Gas Liquids
Mboe - Thousands of barrels of oil equivalent
MMboe - Millions of barrels of oil equivalent
PDP - Proved Developed Producing
TP - Total Proved Reserves
TPP - Total Proved and Probable Reserves
IFRS - International Financial Reporting Standards as issued by theInternational Accounting Standards Board
WTI - West Texas Intermediate, the reference price paid in U.S.dollars at Cushing, Oklahoma for the crude oil standard grade
Forward-Lookingstatements
Certain information in this newsrelease, including the operations at the Company’s properties,constitute forward-looking statements under applicable securitieslaws. Although Avila Energy Corporation believes that the expectationsreflected in these forward-looking statements are reasonable, unduereliance should not be placed on them because Avila Energy Corporationcan give no assurance that they will prove to be correct. Sinceforward looking statements address future events and conditions, bytheir very nature they involve inherent risks and uncertainties. Theforward-looking statements contained in this news release are made asat the date of this news release and the Company does not undertakeany obligation to update publicly or to revise any of the includedforward-looking statements, whether as a result of new information,future events or otherwise, except as may be required by applicablesecurities laws. This release includes certain statements that may bedeemed “forward-looking statements”. All statements in thisrelease, other than statements of historical facts, that addressfuture production, reserve potential, exploration drilling,exploitation activities and events or developments that the Companyexpects are forward looking statements. Although the Company believesthe expectations expressed in such forward-looking statements arebased on reasonable assumptions, such statements are not guarantees offuture performance and actual results or developments may differmaterially from those in the forward-looking statements. Factors thatcould cause actual results to differ materially from those in forwardlooking statements include market prices, exploitation and explorationsuccesses, continued availability of capital and financing, andgeneral economic, market or business conditions. It should not beassumed that the estimates of net present value of future net revenueattributable to the Company's reserves presented above represent thefair market value of the reserves. The recovery and reserve estimatesof the Company's oil, NGL, and natural gas reserves provided hereinare estimates only and there is no guarantee that the estimatedreserves will be recovered. Further, there is no assurance that theforecast prices and costs assumptions will be attained, and variancescould be material. Investors are cautioned that any such statementsare not guarantees of future performance and those actual results ordevelopments may differ materially from those projected in theforward-looking statements. Barrel ("bbl") of oil equivalent("boe") amounts may be misleading particularly if used inisolation. All boe conversions in this report are calculated using aconversion of six thousand cubic feet of natural gas to one equivalentbarrel of oil (6 mcf=1 bbl) and is based on an energy conversionmethod primarily applicable at the burner tip and does not represent avalue equivalency at the well head. This news release shall notconstitute an offer to sell or the solicitation of any offer to
buy, nor shall there be any saleof these securities in any jurisdiction in which such offer,solicitation or sale would be unlawful. The securities offered havenot been and will not be registered under the U.S. Securities Act of1933, as amended, and may not be offered or sold in the United Statesabsent registration or applicable exemption from the registrationrequirements of the U.S. Securities Act and applicable statesecurities laws. Trading in the securities of Avila Energy Corporationshould be considered highly speculative. Neither the Canadian StockExchange nor its Regulation Services Provider (as that term is definedin the policies of the Canadian Stock Exchange) accepts responsibilityfor the adequacy or accuracy of this release. For more information onthe Company, Investors should review the Company’s registeredfilings which are available at www.sedar.com.
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