In California, Ener-Core received a non-binding notification letter from Dresser-Rand noting Dresser-Rand’s intent to issue a formal purchase order for $2.1 million pursuant to the Supply Agreement terms of the Commercial License Agreement (CLA) that it signed with Ener-Core in November 2014. The letter characterizes the agreement with Pacific Ethanol as “a huge milestone and a great opportunity to demonstrate the importance of the Ener-Core power oxidizer,” and states that the Dresser-Rand project team has already engaged and is working with the Ener-Core team.
The Letter of Intent also notes that the formal purchase order to Ener-Core is contingent upon a successful SSAT (Sub Scale Acceptance Test) as defined in the CLA and scheduled to be conducted in June 2015, after which time Dresser-Rand has agreed to issue the purchase order.
Pacific Ethanol announced its agreement with Dresser-Rand in January 2015, to install a cogeneration system including two of Ener-Core’s Power Oxidizers to convert waste gas from ethanol production into electricity and steam. This agreement followed Ener-Core’s November 2014 entrance into a global licensing agreement with Dresser-Rand to develop and market the Dresser-Rand KG2-3GEF gas turbine coupled with the Ener-Core oxidizer.