Plastic2Oil Inc. (P20), Niagara Falls, New York, has announced that it signed a 20-year master agreement Dec. 21, 2017, with Veridisyn Technologies LLC, a Tuscaloosa, Alabama-based company engaged in development of alternative energy projects, under which Veridisyn has agreed to license P2O’s technology and purchase P2O processors.
This new strategic partnership combines Veridisyn’s extensive experience in processing scrap plastics with P2O’s proprietary technology for deriving ultra-clean, ultra-low sulphur fuel that requires no further refining, directly from unwashed, unsorted scrap plastics.
As more particularly set forth in P2O’s Form 8-K filed with the U.S. Securities and Exchange Committee Dec. 22, 2017, P20 says expected minimum gross proceeds to the company will be $4 million from the initial sale of two P2O processors to Veridisyn. If successful, P2O says the partnership could result in the sale and deployment of 30-40 processors at Veridisyn sites, for $90 million to $120 million in future revenues (based on a $3 million price per processor), the company says.
In addition, once the processors have been fully deployed, P2O says it will receive a royalty of 5 percent of gross fuel sales by Veridisyn, and no less than $0.50 per pound for use of its proprietary catalyst. P2O will also provide ongoing monitoring and maintenance services at agreed upon costs and rates.
Rick Heddle, P20 CEO says, “By turning waste plastic into fuel without any hazardous waste, this joint industry solution will help accelerate plastic recycling in cities, towns and industrial plants, and be a major step forward in meeting a significant environmental challenge.”
“I am very excited about moving forward with Plastic2Oil in implementing its breakthrough technology to leverage the substantial global market opportunity for plastic to fuel solutions,” says Veridisyn Managing Director Robin Curtis.
P20 is a North American fuel company that transforms unsorted, unwashed scrap plastic into ultra-clean, ultra-low-sulfur fuel without the need for refinement. The company says its patent pending product with the same name, P20, is a proprietary, commercially viable and scalable process designed to provide immediate economic benefit for industry, communities and government organizations faced with scrap plastic recycling challenges.
“With its revolutionary P2O technology, P2O has pioneered a process that has the ability to change the way the world handles waste plastic and plastic recycling. P2O is committed to environmental sustainability by diverting plastic waste from landfill and potential incineration,” the company says in a press release announcing the partnership.
P20 also says in the release that it is focused on reducing the cost of plastic recycling programs for municipalities and businesses in the U.S.