Midwest Energy Emissions Corp - ME2C Environmental (OTCQB:MEEC) - announced that it has exercised its right of first refusal (ROFR) for mercury emissions capture product supply with a significant coal-powered utility operating in the Midwest.
The company said that this major utility entered into a license agreement with it in 2021 which provided the ROFR with respect to certain future supply business.
ME2C said it is exercising the ROFR and matching the terms of an offer made by another supplier for a direct three-year supply order and a renewal option, which is expected to have a value of about US$1 million annually.
READ: ME2C Environmental signs multi-year contract renewal with an annual value expected to reach $1.5 million
The utility will begin testing ME2C's Sorbent Enhancement Additive (SEA) products in pre-supply planning discussion to determine adequate supply quantities and any sorbent tunability that may be necessary to help the utility meet the strictest mercury emissions capture and compliance requirements.
The company said it expects that direct supply orders for the utility's plant locations will begin in the near term during the next few months of 2022.
"While we had no previous interaction with this utility prior to 2021, this utility's immediate support and swift recognition of our patented technologies for mercury emissions capture has been evident," said ME2C CEO Richard MacPherson in a statement. "Within several months of announcing a license agreement with this utility that was reached in November 2021, we are excited to move toward the next phase in reaching a direct supply partnership. Adopting a strong business-first approach across the coal-fired industry has allowed us the opportunity to expand our core business organically creating positive relationships."
MacPherson added: "Once direct supply orders begin by mid-year, this significant new business will be supported by the commissioning of our batch plant in Texarkana, an innovative facility that will support additional new supply business that we anticipate during 2022. As we expand our focus into new areas of growth this year, we are excited to reinforce a strong recurring revenue stream that will continue to strengthen our bottom line."
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