The payment, valued at $425,000, will be due within five business days after notification from OriginOil to MBD of the availability of the extraction system and a successful inspection and power test.
OriginOil CEO Riggs Eckelberry said the company has received a firm contract for a large-scale extraction system from MBD on 23 May 2011.
"Recently, MBD increased this order due to changes in configuration, and issued a purchase order on 29 July 2011," Eckelberry said.
"The total value of this purchase order is $850,000, of which $297,500, or 35%, was paid on 5 August 2011."
The final payment of $127,500 of the total, will be due within five business days after the completion of installation and performance acceptance.
In January 2011, the company received an order, worth $150,000, from MBD for a mobile system.
The new system on order is expected to process up to 1100 liters per minute of algae culture continuously, enough to process the daily harvest at MBD’s upcoming one-hectare site at Queensland’s Tarong power station.
OriginOil is the developer of a breakthrough technology to extract oil from algae and engaged in the global algae oil services industry.
