Waste-to-energy company MagneGas Corporation has sealed the deal on its largest single equipment sale to date and its first in Europe.
MagneGas first announced that it had signed a Letter of Intent (LOI) for the $2.65m deal with a still as-yet-unnamed German company in October 2016. The US-based business has today announced that the contract has been given the go-ahead following the signing of definitive agreements between the two parties.
The confirmed contract includes the sale of both a Gasification and Sterilisation system as well as supply of MagneGas2® fuel. It also includes royalties and expansion rights.
CEO Ermanno Santilli enthused, “We are thrilled that our original LOI progressed so quickly to definitive agreements. We believe MagneGas2 fits very well into the European markets that have been moving towards clean and renewable fuel alternatives.”
Under the terms of the agreement, MagneGas will manufacture and deliver: a 300KW stationary Gasification system, a 100KW mobile Sterilisation system, 250 cylinders full of MagneGas2, and 50 MagneGas regulators.
It is understood that the German recipient will initially use the Gasification system to produce MagneGas2 fuel to sell into the national market, with the potential of other markets opening up soon after.
The Sterilisation system will be used for demonstrations and small service contracts with the goal of entering the agriculture and municipal wastewater treatment markets in Germany.
“This is the largest sale in the history of MagneGas and our first sale in Europe. We are looking forward to 2017 and believe this is a great start,” Santilli added.
MagneGas2 is a hydrogen-based fuel and is used as a replacement for acetylene. Its creation is based on flowing liquid waste through a submerged electric arc system between two electrodes. The arc decomposes the liquid molecules into atoms as it forms a plasma around the tips of the electrodes at around 5,500°C. MagneGas fuel is then created by decomposed atoms rising to the surface and naturally forming into a gas.