AFC Energy and Waste2Tricity in Deal to Take On Asia
Fuel-cell energy developer AFC Energy PLC Thursday said it has entered into a commercialisation agreement with Waste2Tricity International Limited (W2T) to promote and develop its fuel cell products in Southeast Asia.
Established in 2008, Waste2Tricity works with clients and partners to develop, fund and support energy-from-waste deployment projects.
The agreement builds on a commercialisation deal for the UK market announced in April 2012 whereby W2T promoted and developed projects involving the integration of AFC’s fuel cell products with hydrogen derived from the gasification of municipal solid waste to generate renewable energy.
AFC said the new agreement will begin in Thailand, where demand for electricity is forecast to grow by an estimated 4.4% a year for the next 15 years.
The company also said the volume of municipal waste generated by rising living standards and population growth in Thailand is expected to increase by an estimated 3.5% per annum to 20 million tonnes annually by 2022.
W2T’s Thai subsidiary will be AFC Energy’s exclusive agent in Thailand for securing fuel-cell system supply contracts from projects where waste is gasified.
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.
Under the terms of the deal, AFC will receive a non-refundable appointment fee of GBP1.2 million payable in stages over four years.
AFC Energy and W2T have collaborated closely since the UK agreement was signed, and the Age of Reason Foundation is a substantial shareholder in both companies.