MagneGas, the clean technology company, has significantly expanded its relationship with its three largest distributors ­– Holston Gases, Haun Welding Supply and AWISCO.

The three companies have all decided to increase their MagneGas2® purchases due to increased end market demands. As part of the agreement, the distributors have agreed to minimum purchases to maintain areas of preferential treatment, which, based on current projections, would represent a minimum three-fold increase in sales from these distributors beginning in the fourth quarter of 2017.

Ermanno Santilli CEO of MagneGas commented, “Our sales team has done an excellent job expanding and improving our most important distributor relationships now that MagneGas2 is produced from butanol.”

“We have focused our initial efforts on the Eastern US, and this increase in product demand is a clear indication that we are making a strong impression in the market, and our technology is winning market acceptance. Beyond the minimums required to maintain area exclusivity, we see significant further upside potential, as we have not even penetrated the majority of these distributor’s branches. Our plan is to install a gasification unit near each of these key distributors in order to meet the anticipated demand requirements,” he added.

In its gasification mode, the MagneGas technology can take renewable liquid wastes such as readily available liquid feedstocks, soybean and other vegetable oils, and convert them into a hydrogen-based gas alternative. This gas is proving to be a superior replacement for a variety of legacy industrial fuels, especially acetylene.

“The shift to butanol as our primary feedstock has had a meaningful impact on our ability to compete in the industrial gas marketplace,” commented Scott Mahoney, CFO of MagenGas.

“Our technology has always excited end users, and now, our dramatic reductions in productions costs coupled with lower delivery costs have enabled our Company to serve the growing market demand with a significant improvement in our bottom line. Price reductions in MagneGas2® come at a time when acetylene prices have increased due to supply restrictions associated with the recent hurricanes, further enhancing the market response. We will look to further leverage this success as we expand our existing distributor relationships and add additional distributors in targeted territories in the coming year,” he concluded.