Business
?1.2 m Thai commercialisation agreement with W2T
?1.2 m Thai commercialisation agreement with W2T.
About this update from H-power Plc
[{"type":"text","content":"\n \nRNS Number : 8135R AFC Energy Plc 31 October 2013 \n\n31 October 2013\n \nAFC Energy plc\n(\"AFC Energy\", \"AFC\" or the \"Company\")\n£1.2 million Thai commercialisation agreement with Waste2Tricity \n \nAFC Energy plc (AIM: AFC), a fuel cell energy developer for industry, is pleased to announce that on 30 October 2013 it entered into a commercialisation agreement (the \"Agreement\") with Waste2Tricity International (Thailand) Ltd (\"W2T Thailand\"), a majority owned subsidiary of Waste2Tricity Ltd (\"W2T\"), which grants W2T Thailand with exclusive long term rights for the application of AFC's technology to the waste-to-energy market in Thailand. The Agreement builds on a commercialisation deal for the UK market announced in April 2012 whereby W2T would promote and develop projects involving the integration of the Company's fuel cell products with hydrogen derived from the gasification of municipal solid waste to generate renewable energy.\nThe Agreement will extend AFC Energy's reach into the fast growing emerging markets of South East Asia, beginning with Thailand, where demand for electricity is forecast to grow by an estimated 4.4% per annum for the next 15 years1. Further, the volume of municipal waste generated due to rising living standards and population growth, is expected to increase by an estimated 3.5% per annum, to 20 million tonnes annually by 20222. \nUnder the terms of the Agreement, the Company will receive a non-refundable appointment fee of £1.2 million payable in stages over four years, as follows:\n· £155,000 by 31 December 2013\n· £55,000 by 31 March 2014\n· £125,000 by 31 December 2015\n· £185,000 by 31 December 2016\n· £680,000 by 31 December 2017\nW2T Thailand will be AFC Energy's exclusive agent for an initial term running until 2024 in Thailand for securing fuel cell system supply contracts from projects where waste is gasified, from which AFC Energy expects to derive further revenues. W2T Thailand will receive a commission of 33%, subject to a deduction of an amount equal to the price of all products and services supplied by AFC Energy pursuant to contracts in respect of which such commission is payable.\nAFC Energy and W2T have collaborated closel...