Corac Energy Technologies signs joint development and licensing agreement
Corac is pleased to announce that its subsidiary Corac Energy Technologies ("CET") has signed a joint development and exclusive licence agreement with a global market leader to apply CET's core technology in a range of industrial compressors and expanders for new commercial applications.
The partner will invest more than £800,000 with CET for the development of two systems against agreed project milestones. Following successful system development, the partner will become the exclusive worldwide manufacturer and distributor of the resulting products.
The licence agreement will cover a five year period from delivery of the first systems. Initial market projections indicate an annual revenue stream rising to circa £0.5m when the products are in full commercial distribution.
It further reinforces CET's updated business model to develop commercial, non-bespoke products in funded partnerships with global leaders in the industrial and energy sectors.
Phil Cartmell, Chairman of Corac, commented on today's announcement:
"This agreement delivers on our stated strategy to identify technology or service gaps in the market and respond to these through partnerships with global sector leaders. It demonstrates an increasing confidence in the commercialisation of our unique technologies in multiple sectors of significant scale.
"We look forward to a fruitful partnership in this area, creating long term value for both parties."