LONDON (Alliance News) - Ceramic Fuel Cells Ltd Thursday said it has signed a cooperation deal with Baltic distributor Synergy International OÜ, and will initially sell it 1,000 BlueGEN micro power plants with a value of over EUR20 million over the next two years.
The agreement has an option to be extended for a third year, the company said.
Synergy will be the company's exclusive distribution partner for the Baltic states and Finland, Sweden and Norway.
"A main business partner and shareholder of SI is the Tameo Grupp, one of the biggest wholesalers of electrical materials in Estonia," Ceramic Fuel Cells said.
"We are very pleased to have received this major order. Apart from the commercial success, the terms of the agreed take-or-pay contract enable our company to significantly strengthen its working capital position in response to market requirements," Managing Director Bob Kennett said.
Under the deal, Synergy will buy, on a take-or-pay basis, 500 units in calendar 2014 and a minimum of 500 more units in 2015. The first 100 systems are scheduled to be delivered in the first quarter of 2014, and it will be paid 50% of the price of the first 500 units before the end of 2013. Further payments will be made on a quarterly basis.
The company said it has also recently received a USD4 million tax refund in Australia for research and development activities.
Ceramic Fuel Cells shares were up 33.3% at 2.5 pence early Thursday, one of the biggest gains on AIM.
By Steve McGrath; stevemcgrath@alliancenews.com; @SteveMcGrath1
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