MagneGas Corporation, a leading clean technology company in the renewable resources and environmental solutions industries, has amended the previously announced $500,000 consulting agreement with a European partner.
The contract was increased to $750,000 for the purpose of accelerating the commercialisation of MagneGas2® as a renewable cutting fuel for the European market. The company anticipates initial product launch in the first quarter of 2018. The new consulting agreement also includes testing, technical validation, and commercialisation responsibilities related to co-combustion.
Ermanno Santilli, CEO of MagneGas, commented “We continue to expand the scope of our European partnership, which reflects their strong confidence in both our technology and the addressable market opportunity.”
He continued, “We have been in constant dialogue with our European partners and are very encouraged by their progress. They have achieved significant milestones towards completing their financing, and they are making excellent inroads with some of the largest corporate consumers of cutting fuel in Northern Europe. The prospective customers for MagneGas2 are ready and waiting at scale, and we look forward to unveiling the full opportunity in the coming weeks. In addition, the executive team for our European partners has excellent relationships within the utility industry. We see significant opportunities to accelerate the commercialisation of our coal co-combustion technology, starting in Germany and leading to a broader European roll-out.”
Scott Mahoney, Chief Financial Officer of MagneGas, said, “We remain highly confident in the prospects for this European partnership and look forward to closing and funding the joint venture in the first quarter of 2018, subject to completion of a few remaining items.”
“As a result of this latest contract expansion, we plan to devote additional resources towards accelerating the European opportunity, both for our proven and commercialised MagneGas2 product, as well as the potential to unlock our co-combustion technology at scale,” Mahoney added.