Most companies will absorb additional costs related to complying with expected methane regulations. Dresser-Rand and Ener-Core’s solution will instead enable clients to generate revenue by selling the energy that they produce – or use the additional energy to significantly reduce their energy purchases.
Late last year, Ener-Core, Inc. entered into a global licensing agreement with Dresser-Rand to develop and market Dresser-Rand’s KG2-3GEF 2 MW gas turbine coupled with Ener-Core’s oxidizer. While specific details of the deal have not been released, the license agreement grants Dresser-Rand exclusive rights to commercialize Ener-Core’s 1-4 MW Gradual Oxidizer, bundled with Dresser-Rand’s KG2 gas-turbine product line.
The bundled solution will enable both companies to address the burgeoning market of methane emissions compliance. As part of the agreement, Dresser-Rand will pay a $1.6 million initial license fee, and subsequently agrees to achieve annual sales thresholds agreed to by both companies in order to retain the commercial license.
With its 250 kilowatt power stations already operating in Europe and the United States, Ener- Core’s Gradual Oxidation technology provides for base-load power and energy security while other renewable energy systems are dependent on intermittent sources of power generation. Executives with Ener-Core estimate that the amount of waste gases that are polluted annually into the atmosphere in the form of wasted methane could be used to generate up to 65,000 MW of clean energy – the equivalent of powering 65-80 million homes. Were that gas to be turned into fuel for an Ener-Core / Dresser-Rand generator it would, in effect, offset the greenhouse gas pollution of 254 million vehicles registered in the U.S. in 2012.
“This commercial license is a great opportunity for Ener-Core to successfully scale-up its power generation technology to the 2 MW power capacity,” said Alain Castro, CEO of Ener-Core. “Most industries that currently flare their waste gases will soon be able to use these waste gases productively, while also significantly reducing their emissions of waste gases into the atmosphere. This is great news for our world’s air quality, and great news for the financial bottom-lines of the industries that currently emit these greenhouse gases into the atmosphere.”
Dan Levin, Dresser-Rand Vice President, Environmental Solutions, added, “The combination of reducing harmful exhaust emissions and generating clean energy from waste gases is a truly significant opportunity for many industrial companies. While most companies are focused on waste gas capture and destruction, Ener-Core’s unique Gradual Oxidation technology, combined with our gas turbines, will enable industrial clients across a wide range of industries to utilize their industrial waste gases to generate clean energy.”
The two companies will partner to market and sell the combined product to a variety of potential industrial customers including, coal mines, oil and gas refineries, oil and gas drilling sites, distilleries, food processing plants, and landfills.