Sulnox Group (LSE:SNOX) has signed a four-year supply agreement with Spring Marine Management, a Greek ship management company that has used the Sulnox Eco fuel additive since 2023.
The deal covers supply of Sulnox Eco for at least 34 vessels and approximately 600,000 litres of product over the contract term, roughly 70,000 litres more per year than current levels, reflecting fleet expansion and larger vessels.
Spring Marine will also subscribe for up to 2.75m new shares at 40p each, a maximum investment of £1.1m, issued in quarterly tranches linked to its purchases under the supply agreement, with the first tranche due in January 2027.
Spring Marine's own monitoring, using Coriolis mass flow meters and torque meters, has recorded average fuel savings of roughly 5%, alongside reduced sludge, cleaner injectors and lower visible emissions.
"Our decision to enter into a four-year supply agreement reflects our confidence in the product and the results it continues to deliver," said Captain George Chondronikolas, General Manager of Spring Marine.
Sulnox chief executive Ben Richardson called the investment "a powerful further endorsement of our product and strategy", noting Spring Marine's use of vessel telemetry to validate the technology's fuel and emissions performance.
Once fully issued, the subscription shares would represent up to 1.78% of Sulnox's enlarged share capital, with proceeds earmarked for the company's continued growth and global expansion.
News Intelligence what this means for the company
Sulnox has locked in a four-year supply contract with Spring Marine covering 600,000 litres—roughly 70,000 litres more annually than current levels—plus a £1.1m equity investment in quarterly tranches tied to purchases. This formalizes a relationship that materially strengthened Sulnox's commercial evidence base and reduced technical adoption risk for fleet operators when Spring Marine's verified fuel-savings data and ESG award were published in July; the deal now converts that validation into committed volume and capital, expanding the addressable fleet from 34 to more vessels while anchoring a repeat customer through 2030.
The deal demonstrates repeat-customer stickiness and willingness to scale, but the £1.1m investment—equal to 72% of Sulnox's £1.53m cash position at quarter-end—arrives only in quarterly tranches from January 2027 onward, so near-term cash relief is modest. Volume growth of ~70,000 litres annually is material against Q1's reported 73.1% volume growth, but the contract's four-year term reduces near-term revenue concentration risk.
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