Methes Energies International Ltd. will receive US$4 million from an agreement it has signed to license its design and software for a 3,000-liter per hour biodiesel processor to manufacture biodiesel processors.
The licensee was not disclosed. Under the agreement, Methes will also receive 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 February 20.
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 pre-treatment process using the PP-MEC catalyst. Other products and services to be provided by Methes will be covered by separate agreements.