Cyclone Secures Agreement to Manufacture Engines For Phoenix Power Group’s Proprietary Waste Oil to Power Systems
October 08 2013 - 4:36AM
Access Wire
POMPANO BEACH, FL, (Accesswire - October 8, 2013)
- Cyclone Power Technologies
Inc. (OTCQB: CYPW), developer of the
all-fuel clean-tech Cyclone Engine, announced
today that it has signed a revised and restated License Agreement
with Phoenix Power Group LLC. Under this
agreement, Cyclone and its waste-to-power
operating subsidiary, Cyclone-WHE LLC, will manufacture and supply
Phoenix with a minimum of 6,500 engines over the next five years.
Phoenix is Cyclone’s exclusive, worldwide licensee with rights
to utilize Cyclone engines to produce power from the clean
combustion of used motor oil, as well as other waste
fuels and engine lubricants. Phoenix’s distributors
currently control 70% of the used motor oil furnace market, with
more than 150,000 such heat-producing units beings sold over the
last several decades.
Under the terms of this new agreement, Phoenix will purchase
engines for a period of at least five years from Cyclone-WHE at
prices to be determined at a future date. In order to maintain its
exclusivity under the ten-year license, Phoenix must purchase at
least 6,500 engines during the initial five-year period after
delivery of the first running prototypes. The 10hp Waste Heat
Engine (WHE) model will be the first engine to be provided;
however, all Cyclone engines are covered under the license. Upon
completing certain engine development milestones, the agreement
will be transferred to Cyclone-WHE to execute the production phase
of this program.
"This is an important agreement for Cyclone and its
shareholders, as it provides Cyclone-WHE with its first committed
customer to purchase engines over an extended period of time for a
solid and proven distribution pipeline. We expect this will
generate substantial product sales revenue, as opposed to license
royalties, and a firm base to ramp up our manufacturing operations.
We’re thrilled to be working with the capable and well supported
team at Phoenix on the launch of our engines," stated Christopher
Nelson, President of Cyclone and Managing Director of
Cyclone-WHE.
Thomas Thillen, President of Phoenix, stated: "We have seen
great progress at Cyclone over the last few months with their focus
on commercialization of the WHE. The addition of the engineering
team at Ohio State University and the manufacturing capacity with
Precision CNC has provided us confidence that we will see Cyclone
engines in Phoenix used oil cogeneration systems
in the near future. We are supportive of their development
path, and look forward to a long, mutually profitable business
relationship."
About Cyclone Power Technologies
Cyclone Power Technologies is the developer of
the award-winning Cyclone Engine - an all-fuel,
clean-tech engine with the power and versatility
to run everything from waste energy electric generators and solar
thermal systems to cars, trucks and locomotives. Invented by
company founder and Chairman Harry Schoell, the patented Cyclone
Engine is an eco-friendly external combustion
engine, ingeniously designed to achieve high thermal efficiencies
through a compact heat-regenerative process, and to run on
virtually any fuel - including bio-diesels,
syngas or solar - while emitting
fewer greenhouse gases and irritating pollutants into the air. The
Cyclone Engine was recognized by Popular Science Magazine
as the Invention of the Year for 2008, and was
presented with two Society of Automotive Engineers’ AEI
Tech Awards. Additionally, Cyclone was named
Environmental Business of the Year by the Broward
County (Florida) Environmental Protection Department. For more
information, visit http://www.cyclonepower.com/.
Follow Cyclone on Facebook:
http://www.facebook.com/CyclonePowerTechnologies
Safe Harbor Statement
Certain statements in this news release may contain
forward-looking information within the meaning of Rule 175 under
the Securities Act of 1933 and Rule 3b-6 under the Securities
Exchange Act of 1934, and are subject to the safe harbor created by
those rules. All statements, other than statements of fact,
included in this release, including, without limitation, statements
regarding potential future plans and objectives of the company, are
forward-looking statements that involve risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ
materially from those anticipated in such statements. The company
cautions that these forward-looking statements are further
qualified by other factors. The company undertakes no obligation to
publicly update or revise any statements in this release, whether
as a result of new information, future events or otherwise.
Company Contact
Christopher Nelson
Tel: 954-943-8721
chris@cyclonepower.com
Phoenix Contact
Doug Petty, Vice President
Tel: 901-568-4007
doug@phoenixpowergroup.com
http://www.phoenixpowergroup.com/