MagneGas Corp., a company that has a patented process that converts waste liquids into fuel, has entered into its largest equipment sale to date with a letter of intent to manufacture and deliver certain equipment and supplies to a company based in Germany.
MagneGas will receive $2.65 million for its proprietary gasification and sterilization systems and will supply MagnesGas2 fuel and cylinders.
Under the terms of the letter of intent, MagneGas will manufacture and deliver a 300KW stationary gasification system, a 100KW mobile sterilization system, 250 cylinders full of MagneGas2 and 50 MagneGas regulators.
In July, Waste360 sat down with Luisa Ingargiola, chief financial officer for MagneGas, to discuss the MagneGas2 alternative fuel and the company’s hopes to burn it with less efficient fuels and wastes resulting in improved emissions in the future.
The agreement calls for exclusive distribution rights in Germany, with an option to purchase rights to certain additional countries with system deployments.
MagneGas has agreed to keep the name of the German company and the exact details of the LOI confidential until the parties enter into the definitive agreements. The gasification system will be used to produce MagneGas2 fuel to sell into the German market with the potential of other markets coming online soon after. The sterilization system will be used for demonstrations and small service contracts with the goal of entering the agriculture and municipal wastewater treatment markets in Germany.
"The entire MagneGas team is excited about this opportunity because it holds the potential to open up target markets that desperately need our technology and the fuel it can produce,”
MagneGas CEO Ermanno Santilli said in a statement. “This sale is the largest sale in the history of MagneGas and will provide us the opportunity to expand further into Europe. We believe this is one of the most significant events in the Company's evolution and will help define our strategy for 2017 and beyond."