Methes to receive $4M for limited license of its biodiesel tech

Methes Energies International Ltd. announced Jan. 20 that it has granted a U.S.-based entity a nonexclusive license to use Methes’ design and software for a 3,000 liter per hour biodiesel processor to manufacture biodiesel processors for its own projects in the U.S. Methes is to receive a $4 million upfront cash payment and will be entitled to an additional $100,000 for each of the first 40 units manufactured by the licensee. Payment of the initial $4 million license fee is scheduled to be received on or before Feb. 20, which provides sufficient time for Methes to gather and package design information to be delivered to the licensee.

Under a separate consulting agreement, Methes will collaborate with the licensee on the manufacture of the first five units. This transaction does not include any other Methes technologies including Methes’ new pretreatment process using the PP-MEC catalyst. Other products and services to be provided by Methes will be covered by separate agreements.

“What a great way to start 2015,” said Nicholas Ng, president of Methes. “We have been working on this project for a long time and we are very excited with the significant upfront payment and validation of our technology and what this new relationship means for our future. The licensee is well-funded and well-organized to lead such a large project over the next several years. They have already identified over a dozen strategic locations across the U.S. where they intent to install biodiesel processors. Again, it took a while but they have done this right and with the right partners in the oil and gas industry. Just like us, they see a bright future for the biodiesel industry. We are very proud that they have selected us and recognize the experience and the great technology we bring to the table.”