ALTER NRG CORP COM (OTCMKTS:ANRGF) received a second installment payment under the license agreement with Waste2Tricity International Limited. The deal was back in December 2013. The exclusive license is applicable for the Thailand market, and is valid for an initial term of five years. It was fixed at a price of $CAN2 million. The company paid $CAN1 million in FY2013, and now made a payment of $CAN325, 000. The remaining amount is payable by March 31, 2015.
Alter NRG entered into a deal with Waste2Tricity which is actively involvement in the project development in the Thailand and the UK. The technology used is known as the “Westinghouse Plasma Gasification Technology” which is owned by Alter NRG. The company reported robust performance in the Thailand market in its first year of the executive license. Waste2Tricity selected the location for their first 1,000 ton per day project. It worked on the initial engineering study and then applied for the Power Purchase Deal with the Thailand government. As of now, Alter NRG and Waste2Tricity are awaiting approval for the Power Purchase Agreement.
Power Purchase Agreement
The project offers great scope to Alter NRG and Waste2Tricity as the Thailand market id dealing with shortage of power supply. The power prices in the region are high, and therefore the two companies can generate attractive returns from their project. The company has located a second site and is in process to apply for a power purchase deal on the second project.
The management view
PK Thummukgool, the Country Director for Waste2Tricity stated the license agreement with ALTER NRG CORP COM (OTCMKTS:ANRGF) will boost its revenue in near term. The company is moving forward with several projects. It includes large scale projects much more similar to those concluded by Air Products in Tees Valley. The Thailand market has robust demand for power generated from waste and also for hazardous waste destruction, making it an attractive market for Waste2Tricity to operate in long-term.