MagneGas signs $2.65-MM equipment sale agreement to German company
TAMPA, Florida -- MagneGas Corporation a company that counts among its inventions a patented process that converts renewable and waste liquids into MagneGas2 fuel, announced that it has entered into its largest equipment sale to date with the signature of definitive agreements to manufacture and deliver certain equipment and supplies to a company based in Germany.
MagneGas will receive $2.65 million for its proprietary Gasification and Sterilization systems and will supply MagnesGas2 fuel and cylinders.
Under the terms of the Agreements, MagneGas will manufacture and deliver a 300KW stationary Gasification system; a 100KW mobile Sterilization system; 3) 250 cylinders full of MagneGas2; and 50 MagneGas regulators. A deposit of $25,000 has been received, with progress payments totaling $2.625 million to be paid over the course of the manufacturing and delivery of the various systems.
The first payment of $1.35 million is due in 90 days with progress payments due thereafter with set construction and delivery milestones. In addition, the German company has indicated an interest in negotiating to purchase several additional systems for multiple markets.
The German company has indicated they will initially utilize the Gasification system to produce MagneGas2 fuel to sell into the German market with the potential of other markets coming online soon after. The Sterilization system is expected be used for demonstrations and small service contracts with the goal of entering the agriculture and municipal wastewater treatment markets in Germany.
"We are thrilled that our original LOI progressed so quickly to definitive agreements,” Ermanno Santilli, CEO of MagneGas Corporation. “We believe MagneGas2(R) fits very well into the European markets that have been moving towards clean and renewable fuel alternatives. This is the largest sale in the history of MagneGas and our first sale in Europe. We are looking forward to 2017 and believe this is a great start."
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