SAN JOSE, CA – August 16th, 2017 - Pacific Green Technologies Inc. (“Pacific Green”) (OTCQB: PGTK) is pleased to announce that it has signed a Memorandum of Understanding (“MOU”) with POWERCHINA SPEM Co., Limited (“POWERCHINA SPEM”) to incorporate a new company whereby Pacific Green will own 50.1% and POWERCHINA SPEM 49.9%.
Following the successful installation of the first ENVI-CleanTM System in China earlier this year both parties have agreed the general understanding of the corporate structure of the new company in China which is scheduled to be incorporated later this fall. Initially the jointly owned company will market Pacific Green’s industry leading patented ENVI-SystemsTM Technology for removal of noxious gases but will look to acquire licenses for further complimentary technologies to market in China and Southeast Asia.
POWERCHINA SPEM is a leading Chinese power equipment manufacturer and a subsidiary of POWERCHINA, the largest power plant equipment manufacturer in China. Pacific Green is the proprietor of emission control technologies utilizing its patented Turbo Head TechnologyTM and has secured the majority share of the new company in China with POWERCHINA SPEM which is due to be finalised in a definitive agreement in September 2017.
The new Chinese company will undertake all the sales, engineering, manufacturing, procurement and installation in China, Russia and Southeast Asia. When possible the Company will also use the new Chinese company for engineering and manufacturing for its worldwide activities.
POWERCHINA SPEM is currently finalising the sales forecasts for the next years along and with the operating budgets and have additionally committed to secure an order for a waste to energy or waste incinerator of not less than 50MWt capacity by January 2018 in order to have the first ENVI-PureTM System sale in China.
Alex Shead, CEO Asia commented:
“We now have a long term structure and platform for our business in China and Southeast Asia. Following the successful commissioning of the ENVI-CleanTM System in Yancheng in China earlier this year, we are now in advanced stages of negotiating the next sale as a prelude to a pipeline of orders through POWERCHINA SPEM’s vast network in China and Southeast Asia. This agreement not only covers our existing portfolio of emission control technologies but will be expanded to include other environmental and renewable technologies.”
Neil Carmichael, Chief Executive of Pacific Green, added:
“This is a very unique agreement in that the Company has the majority share of the new Chinese company with a state owned enterprise in China and one of the top 500 ranked companies in the world. This enables us to operate as a state owned enterprise in China with its obvious benefits yet be transparent with our Chinese business so can consolidate all the turnover and profits from the business in China and Southeast Asia on to Pacific Green’s balance sheet and profit and loss statements”.