Waste-to-energy company gains access to Japanese market with deal
MONTREAL—PyroGenesis Canada, a Montreal-based clean-tech company that designs, develops, manufactures and commercializes plasma waste-to-energy systems and plasma torch products, has announced it has signed an exclusive marketing license agreement with Yasui Facilities of Japan.
The company said Yasui is one of Japan’s preeminent architectural and engineering firms that works with a consortium of companies that, amongst other projects, build incinerators. Yasui provides the local engineering and permitting expertise that PyroGenesis requires to conclude various contracts under discussion.
The terms of the agreement provide Yasui with an exclusive license to market PyroGenesis’ line of plasma waste processing systems in Japan for a period of five years with an automatic five year renewal option based on certain performance milestones.
In exchange for such exclusivity, Yasui will pay PyroGenesis an exclusivity fee of $1.5-million in one installment. In addition, Yasui undertakes to pay all costs associated with the Japanese permitting process, which are estimated to run into the hundreds of thousands of dollars. Yasui also undertakes to reimburse PyroGenesis for future costs incurred in developing the Japanese market.
The company said the agreement has effectively enabled PyroGenesis to bypass the traditional method of penetrating the Japanese market – usually via local trading houses – and has allowed the company to save a substantial amount in middle-man fees.