Alter NRG Corp. sells exclusive license for South Alter NRG Corp. sells exclusive license for South Korea to POSCO ICT for $3 million
10:07 EDT Wednesday, September 05, 2012
TSX - NRG
OTCQX - ANRGF
CALGARY, Sept. 5, 2012/CNW/ - Alter NRG ("Alter NRG" or the "Company") is pleased to announce it has executed an exclusive territory license and joint development agreement ("the Agreement") with POSCO ICT for US$3 million. Under the terms of the agreement, POSCO ICT will have exclusive access for 5 years to Alter NRG's Westinghouse Plasma Gasification Technology for projects that are located in South Korea. POSCO ICT is a subsidiary of POSCO (NYSE: PKX; LSE: PIDD), which is one of the world's largest steel companies, and provides engineering and innovative technology products and services worldwide.
The Agreement stipulates that POSCO ICT will pay an initial installment of US$1 million with the remaining US$2 million paid when POSCO ICT finalizes an engineering contract for its initial project in South Korea. The US$3 million represents exclusive license fees and Alter NRG will provide engineering support, plasma gasification equipment and assist POSCO ICT during the commissioning for each project at market rates. POSCO ICT will also purchase site licenses for each project which provide Alter NRG the option to invest up to 25% in any POSCO owned and operated projects that utilize the Westinghouse Plasma Gasification Technology. Posco ICT currently has a project advancing which project output and economics are being reviewed. Under the term of the agreement Posco ICT must make the initial installment by October 15th, 2012and failure to make this payment will nullify the agreement.
Walter Howard, Alter NRG's CEO, states "We are delighted to have a globally recognized company like POSCO ICT as a customer. After working with the POSCO ICT team for the past year, it is clear that POSCO ICT is aggressively pursuing waste to energy solutions in South Korea. POSCO ICT is another example of a customer that is a multinational company with a strong balance sheet that we believe has the ability to quickly develop projects".