Waste2Tricity announced an agreement with PowerHouse Energy Group making W2T’s Thai subsidiary Waste2Tricity International (Thailand) sole vendor for the Pyromex system in Thailand, with an agreement in principle for the exclusive right to manufacture the Thai systems. This includes a target of a minimum sale of 10 systems in the first 4 years, with revenue opportunities approaching £50M.
The systems will be used for small scale hazardous and clinical waste destruction relying on gate fees for its revenue stream. This economic model contrasts with W2T’s large scale Alter plasma technology, also exclusively licensed in Thailand, where waste derived feedstock is efficiently converted to electricity for the grid.
Waste2Tricity International (Thailand) is negotiating with PHE for the delivery of the first 25 tonne-per-day unit which will be supplied by PHE and optioned for delivery to Thailand by the end of 2014. This will act as a reference site for the technology and W2T(I)T is already discussing the site location with Thai partners.
PK Thummukgool, Director, Waste2Tricity International (Thailand) said, "The small scale Pyromex system enables us to address Thailand’s urgent need to dispose of hazardous and clinical waste safely in an environmentally responsible and cost-effective manner. The ability to locally produce hydrogen from the syngas furthers our goal to create a distributed hydrogen system throughout Thailand."
John Hall, Managing Director, Waste2Tricity said, "Hazardous waste carries a high gate fee and offers a convincing economic model at this scale, initial discussions with our Thai partners suggest a deployment target of at least 50 systems over the life of the agreement. The commercial model is primarily gate fee based, however, the syngas produced will be combusted in a gas engine; longer-term we envisage integrating PHE/Pyromex with the AFC Fuel Cell and delivering multiple 25 tonne-per-day systems taking advantage of the need for local/distributed electrical generation
Keith Allaun, Executive Chairman, PowerHouse Group, plc said, "With W2T as our partner in Thailand, we can begin an aggressive campaign to market our products into the ASEAN market. Waste2Tricity International (Thailand) is a well-known project developer in Thailand, and brings a wealth of local experience and expertise. This allows us to accelerate our intended growth in an area with significant demand for renewable power."