The deal, which builds on a similar deal for the UK market announced in April 2012, grants W2T Thailand with exclusive long term rights to use AFC’s technology for the waste-to-energy market in the country.
In return, AFC Energy will receive a non-refundable appointment fee of £1.2m (€1.4m) payable in stages over four years: €181,302 by December 2013, €64,332 by March 2014, €146,210 by December 2015, €216,367 by December 2016, and €795,295 by December 2017.
W2T Thailand will act as AFC’s exclusive agent until 2024 in the country to secure fuel cell system supply contracts from gasification projects and will get a 33% commission, which is subject to certain adjustments.
Additionally, the agreement will extend AFC’s scope into the emerging markets of South East Asia, beginning with Thailand, where electricity demand is expected to increase by 4.4% per year for the next 15 years.
AFC Energy chief executive Ian Williamson said that the agreement represents its efforts to continue close relationship with Waste2Tricity
"We have been looking at countries around the world where we expect to see the greatest return for our shareholders and waste-to-energy in Thailand shows great promise.
"The energy needs of the southern Asian countries are expected to continue growing rapidly in the coming years and this is an example of how AFC Energy plans to commercialise and embed its technology in key energy markets worldwide.
"This is not an overnight process but we are putting in the relationships and preparing for our initial projects as they are delivered by Waste2Tricity," added Williamson.
