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Plasma Gasification Technology Licensed for Industrial Waste Applications

01 May 2012

Swindon, UK based Advanced Plasma Power (APP), a specialist in waste gasification, has entered into an exclusive licence arrangement with institutionally-funded Plasma Green Energy (PGE) to construct and operate Gasplasma plants globally utilising particular industrial wastes.

APP said that it is already a joint venture partner in PGE and holds a 20% interest.

The Gasplasma process is a gasification and plasma conversion technology that converts wastes into an energy rich synthesis gas (syngas) and a solid, vitrified product each with multiple applications.

The syngas can be used to generate electricity directly in gas engines, gas turbines and fuel cells or it can be converted to substitute natural gas (Bio-SNG) or liquid fuels.

According to the company the deal is the first of its kind in the sector and will see an exclusive licence fee of £6.25 million payable to APP immediately, with plant licence fees and royalties payable to APP thereafter on a project specific basis.

In addition, the deal grants exclusive rights for PGE to market the APP’s Gasplasma solution for use in treating specific industrial waste feedstocks which arise from certain industrial processes and applications including oil, petrochemical, coal and paper industry wastes.

The initial exclusivity period laid out in the deal is 5 years, during which time PGE will be required to secure sales for a minimum of 540,000 tonnes per year of throughput (or the equivalent of six standard APP plants).

Thereafter APP said that the annual sales milestones require the purchase of the equivalent of four plants in year 6 and then five plants from year 7 onwards in order for exclusivity to be maintained.

APP added that PGE and its shareholders have particular industry expertise in the sectors licensed under this deal, which are not currently areas of focus for APP.

The PGE Board has committed to putting significant resources behind the penetration of these markets, whilst APP said that it will concentrate its efforts on the extensive municipal (MSW) and commercial & trade waste markets.

“We have secured sector expertise and extended our reach into specialist waste markets in which we are not currently active,” explained Rolf Stein, CEO of Advanced Plasma Power.

APP also recently announced a project with National Grid to demonstrate the production of Bio-SNG at the Swindon Gasplasma plant.  (See WMW story).

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