MagneGas Corporation has completed and shipped its first equipment sale to an industrial gas business in the US.
MagneGas, a waste-to-energy innovator that converts liquid waste into a hydrogen-based fuel, shipped the Plasma-Arc Gasification system to Green Arc Supply, LLC of Louisiana.
Under the terms of the agreement, MagneGas received a total of $775,000 towards constructing the system. The system was then shipped to Green Arc following a final payment of $191,500 and factory acceptance.
Ermanno Santilli, CEO of the Florida-based business, said that this latest delivery continues the company’s great start to 2017 and stated, “This milestone is an indication of our ability to expand the industrial gas business organically through equipment sales and retail expansion.”
Under the terms of the Gasifier Purchase Agreement, Green Arc will have exclusive distribution rights for certain regions of Louisiana and Texas with the option of expanding their exclusivity rights in the states with the purchase of additional systems.
However, the deal calls for royalty payments of $0.02 per cubic foot of product produced by Green Arc. As a result, MagneGas believes that future deals with Green Arc will result in “significant capital infusions” through additional equipment sales and receipt of royalty payments.
“We are very confident that this sale will result in additional equipment sales to this customer and look forward to the revenue impact this relationship will have in 2017 and beyond,” Santilli added.