SulNOx Group PLC on Monday said it had signed onto a ‘milestone’ deal with Eastern Pacific Shipping Pte Ltd.

The London-based hydrocarbon fuel developer said that the deal includes significant investment in SulNOx by the Singapore-based shipping giant. It also encompasses a supply contract for SulNOxEco fuel conditioners.

EPS will adopt a minimum of 30 fuel conditioner vessels for a minimum of 18 months’ use per vessel and has agreed to introduce SulNOxEco to other large shipping companies.

SulNOx expects the deal itself to generate ‘significant’ revenue, securing committed product volumes of 250,000 litres. The company also anticipates it will boost growth by attracting new customers.

As part of the agreement, EPS Ventures will become a strategic shareholder, subscribing for a total estimate of 11.7 million SulNOx shares, equivalent to a maximum 8.5% stake in the company.

SulNOx said EPS Ventures will subscribe for up to 4.7 million additional shares over a maximum of three years, based on its success bringing in new SulNOx customers, raising its stake by a further 3.3%.

EPS Chief Executive Officer Cyril Ducau said the partnership would support its ‘long-term sustainability objectives’.

SulNOx Chair Radu Florescu added that the contract ‘proves the effectiveness of SulNOx products beyond doubt at a time when the industry is crying out for solutions to reduce fuel consumption and associated emissions against a backdrop of increasing regulation.’

SulNOx shares were up 13% at 104.50 pence each on Monday afternoon in London.

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