MagneGas Corporation has successfully installed a plasma-arc gasification system at a Louisiana-based Industrial gas company to supply the Gulf States.
The new operating system, previously announced as contracted in an arrangement called the ‘Gasifier Agreement’, was sold to Green Arc Supply, LLC of Louisiana.
Green Arc purchased a gasifier to manufacture and distribute MagneGas2® exclusively in certain regions of Louisiana and Texas.
Pursuant to the terms of the Gasifier Purchase Agreement, the company received a total of $775,000 for the purchase of the system. The agreement also calls for royalty payments which amount to $0.02 per cubic foot produced by Green Arc.
Under the terms of the Gasifier Purchase Agreement, Green Arc will have exclusive distribution rights for certain regions of Louisiana and Texas with non-exclusive distribution rights in remaining regions of Louisiana and Texas and all of Arkansas, Mississippi and Oklahoma. Green Arc has the right to expand its exclusivity in those states with the purchase of additional systems.
The company believes that entering into future agreements with Green Arc for the distribution of its products will result in significant capital infusions through additional equipment sales and receipt of royalty payments.
Ermanno Santilli, CEO of MagneGas Corporation, stated, “We are excited to announce our first ever operating system at a customer location. We are pleased that our product continues to gain market acceptance, and we are optimistic that more equipment sales with distributors will positively impact our revenue growth in 2017 and beyond.”