SAN JOSE, CA – July 28, 2015 - Pacific Green Technologies Inc. (“the Company”) (OTCQB: PGTK) is pleased to announce that it has signed a Memorandum of Understanding (“MOU”) with POWERCHINA SPEM Co., Limited (“POWERCHINA SPEM”).
POWERCHINA SPEM is a leading Chinese power equipment manufacturer and a subsidiary of POWER CHINA, the largest power plant equipment manufacturer in the People’s Republic of China (“PRC”). The Company has been in discussions with POWERCHINA SPEM regarding the commercialisation and development of its emission control technologies in the PRC. In that regard, POWERCHINA SPEM commissioned an external comparative analysis of existing emission control technologies in the PRC by an established flue gas desulphurisation expert. The analysis undertaken proved that the ENVI-Clean™ emission control system has significant potential to be a market leader in the PRC due to the low operating cost of the system (approximately half the operational cost of the next best alternative) and its competitive price.
As a result of this analysis, the POWERCHINA SPEM MOU sets out the strategic objectives of cooperation between the Company and POWERCHINA SPEM:
- for POWERCHINA SPEM to install the first ENVI-Clean™ system in an upgraded coal-fired power plant to demonstrate the effectiveness of the system to its Chinese customers;
- for POWERCHINA SPEM to license the Company’s ENVI-Clean™ emission control system in the PRC. The intention is for the Company to grant POWERCHINA SPEM a ten year license that allows it to sell, engineer, manufacture and install the ENVI-Clean™ system at coal fired power plants with capacity of more than 100MW in the PRC. Any sales by POWERCHINA SPEM will generate a royalty to the Company on terms to be decided;
- for the Company to engage POWERCHINA SPEM as the Company’s manufacturing partner for its worldwide technologies and renewable energy projects; and
- for POWERCHINA SPEM to endeavour to apply the ENVI-Pure™ system on a series of waste to energy projects in the UK.
Neil Carmichael, Chief Executive of the Company, commented: “We could not wish for a more influential partner in China and look forward to building a strong working relationship with POWERCHINA SPEM to commercialise our technologies and build a solid platform for the Company’s future success in Asia”.