Dec 31 2015
Tecogen® Inc., a manufacturer and installer of high efficiency, ultra-clean combined heat and power products including natural gas engine-driven cogeneration, air conditioning systems, and high-efficiency water heaters for industrial and commercial use, is pleased to announce the formation of a joint venture company with a group of Strategic Investors for its patented Ultera™ emissions control technology.
Ultra Emissions Technologies Ltd. ("Ultratek") was created to advance Tecogen's near-zero emissions technology for adaptation to transportation applications powered by spark-ignited engines (including gasoline, natural gas, and propane fueled vehicles) in the automobile and truck categories. Tecogen has granted Ultratek an exclusive license for development of its patented, emissions-related, intellectual property for the vehicle market while the Strategic Investors have collectively contributed $3 million to finance the initial operations of the joint venture. Tecogen retains the rights to its Ultera emissions control technology for all other applications.
Robert Panora, Tecogen's President, Chief Operating Officer, and one of the inventors of the Ultera technology will serve as JV co-Chief Executive Officer alongside Dr. Elias Samaras. Dr. Samaras is the founder, President and Managing Director of Digital Security Technologies S.A. and the Chief Executive Officer of EuroSite Power Inc. In addition to serving as co-CEO of Ultratek, Dr. Samaras has also been named Chairman of the Board of Directors. The 50/50 joint venture company is incorporated in the Island of Jersey, Channel Islands.
"Our emissions technology systems have been installed and successfully operating for both natural gas and biogas-fueled stationary engine applications for several years now," said Mr. Panora. "The Emissions Advisory Committee (the formation of which was previously announced in October) believes the system may be successfully applied to automotive engines and we are excited to move forward with our new Strategic Partners to pursue the vast potential vehicle market opportunity."
Speaking on behalf of Ultratek and its partners, Dr. Samaras added, "We are incredibly enthusiastic about the potential for this technology to revolutionize the automotive market. With stricter emissions regulations taking effect in the next few years, I believe we are at the forefront of the evolving emissions control space."
The patented ultra-clean emissions control technology has been rigorously tested by independent labs and shown to consistently reduce the emission of criteria pollutants contributing to smog (CO and NOx) to near zero levels for natural gas engines. Tecogen's emissions technology, developed with funding from the California Energy Commission and Southern California Gas Company, has been independently verified by New Jersey's Department of Environmental Protection and by AVL California Technology Center. Emissions measurements from stationary systems equipped with the ultra-low emissions technology conform to the current California Air Resource Board (CARB) 2007 carbon monoxide (CO) and nitrogen oxide (NOx) standards for distributed power generation. Engines retrofitted with Tecogen's Ultera technology measure at or below current natural gas powered fuel cell emissions levels (according to publicly available data). Because of the Company's strong belief in the value of its emissions technology, patent infringement insurance has been secured by Lloyds of London to defend unlicensed use of Tecogen's intellectual property.
In addition to the joint venture agreement financing, the Strategic Investors have collectively purchased 890,208 shares in Tecogen at a trailing 30 day average price of $3.37, bringing their total initial investment to $6 million.
Tecogen and its joint venture partners will host a conference call on Tuesday January 5, 2016 at 11:00 AM EST to discuss the transaction. In addition to a discussion of the JV details, members of senior management will discuss the progress of the Emissions Advisory Committee and other initiatives related to bringing the groundbreaking patented Ultera™ emissions control technology to the automotive space.