MagneGas Corporation has entered into its largest equipment sale to date with a Letter of Intent (LOI) to manufacture and deliver equipment and supplies to an as-yet-unnamed company based in Germany.
MagneGas is a leading technology company that counts among its inventions a patented process that converts renewable and waste liquids into the innovative MagneGas2® fuel, a replacement for acetylene.
The company has now entered into its largest order to date, a $2.65m sale for its proprietary Gasification and Sterilisation systems and MagneGas2® fuel and cylinders. MagneGas has agreed to keep the name of the German company and the exact details of the LOI confidential until the parties enter into the definitive agreements.
The sale is, however, described as marking a new era for the company as it seeks to expand the availability of its technology and breakthrough MagneGas2® fuel across the European continent in the global $5bn metal-cutting fuel market.
Ermanno Santilli, CEO of MagneGas Corporation, stated, “The entire MagneGas team is excited about this opportunity because it holds the potential to open up target markets who desperately need our technology and the fuel it can produce.”
“This sale is the largest sale in the history of MagneGas and will provide us the opportunity to expand further into Europe. We believe this is one of the most significant events in the company’s evolution and will help define our strategy for 2017 and beyond.”
“This sale is the largest sale in the history of MagneGas and will provide us the opportunity to expand further into Europe. We believe this is one of the most significant events in the company’s evolution and will help define our strategy for 2017 and beyond”
Under the terms of the LOI, MagneGas will manufacture and deliver:
1) A 300KW stationary Gasification system
2) A 100KW mobile Sterilisation system
3) 250 cylinders full of MagneGas2®; and
4) 50 MagneGas regulators.
The LOI also calls for exclusive distribution rights in Germany, with an option to purchase rights to certain additional countries with system deployments. The German recipient will initially utilise the gasification system to produce MagneGas2® fuel to sell into the German market, with the potential of other markets coming online 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.