1st May, 2012 -- Advanced Plasma Power (APP), a world leader in advanced waste to energy and fuels technology, has entered into an exclusive licence arrangement with institutionally funded Plasma Green Energy (PGE) – a joint venture partner in which APP holds a 20% interest - to construct and operate Gasplasma® plants globally utilising particular industrial wastes. The deal, the first of its kind in the sector, has the following key features:
- An exclusive licence fee of £6.25m payable to APP immediately, with plant licence fees and royalties payable to APP thereafter on a project specific basis;
- Exclusive rights for PGE to market the Gasplasma® solution for use in treating specific industrial waste feedstocks which arise from certain industrial processes and applications including oil, petrochemical, coal and paper industry wastes;
- Initial exclusivity period of 5 years during which time PGE will be required to secure sales for a minimum of 540,000 tonnes per year of throughput (or the equivalent of six standard APP plants). Thereafter the annual sales milestones require the purchase of the equivalent of four plants in year 6 and then five plants from year 7 onwards in order for exclusivity to be maintained;
- Exclusive supply arrangement for Gasplasma® plants with APP worth in excess of £100m in revenue to APP in the next five years.
- A non-exclusive agency arrangement with plasma specialist (and APP supplier) Tetronics Limited allowing PGE to market Tetronics hazardous waste solutions into the same industrial waste markets.
PGE and its shareholders have particular industry expertise in the sectors licensed under this deal which are not currently areas of focus for APP. The PGE Board has committed to putting significant resources behind the penetration of these markets which will allow them to be developed whilst APP concentrates its efforts on the extensive municipal (MSW) and commercial & trade waste market. This is a very substantial market globally. In the UK alone, there is a requirement to divert some 40 million tonnes per annum of residual MSW and commercial waste away from landfill.
The Gasplasma® process is an advanced gasification and plasma conversion technology that converts wastes into a clean, high quality, energy rich synthesis gas (syngas) and a solid, vitrified product each with multiple applications.
The syngas can be used to generate electricity directly in gas engines, gas turbines and fuel cells or it can be converted to bio substitute natural gas (Bio-SNG) or liquid fuels. APP recently announced a project with National Grid to demonstrate the production of Bio-SNG at the Swindon Gasplasma® plant. The solid product, Plasmarok®, has a variety of valuable end uses, for instance, as a building material. The process is clean, modular and scalable, delivering high efficiency and maximising landfill diversion whilst minimising visual and environmental impact.
Edward Manukian, CEO of Plasma Green Energy said, “We are delighted to strengthen our relationship with APP in this way. We have ambitious plans to roll-out the world-leading Gasplasma® technology in industrial waste markets which are well known to us and our shareholders.”
Rolf Stein, CEO of Advanced Plasma Power said, “This commercial licence deal with Plasma Green Energy is a notable milestone for APP further endorsing its ground-breaking Gasplasma® technology and its breadth of application. We have secured sector expertise and extended our reach into specialist waste markets in which we are not currently active. The considerable resources which our partner has committed to put behind this will I am confident result in early penetration of these markets whilst allowing APP to focus on its existing extensive project pipeline.”
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