Blutip Power Technologies (blutip Power) , a division of Hy-Drive Technologies, has announced that its mining partner, Mining Technologies International (MTI) has agreed to purchase an exclusive manufacturing and marketing rights agreement for the company’s patented Hydrogen Generating System (HGS). The agreement will see MTI pay $2 million to blutip Power in quarterly instalments, in exchange for the exclusive manufacturing and global distribution licensing rights for Hy-Drive’s Hydrogen Enhanced Diesel Combustion technology – for use with direct-driven rolling equipment applications in the surface mining, underground mining, tunnelling, construction mining and off-highway market sectors.
As a result of this agreement MTI will be licensed to manufacture and supply the current Hy-Drive HGS and all of its associated sub-assemblies, to the worldwide off-road heavy equipment market, as defined above. “In December we announced our plan to re-organise our channels of distribution to better meet customer needs, as we intended to aggressively expand our product offering. This agreement is another important step of our re-alignment,” stated Robert Bucher, President and CEO of Hy-Drive Technologies. “For many years MTI has been very supportive of Hy-Drive and its H2 technology. This commitment is yet another indication of their willingness to work alongside us; providing us the necessary capital to advance our technology with them and expand into new, exciting markets,” he continued.
MTI will have the “first right-of-refusal” on all potential heavy-equipment customer inquiries as defined within the agreement. In the event MTI is not interested in pursuing the opportunity, blutip Power will have the ability to execute through its other channels of distribution. “As I have been on a personal crusade to find innovative ways to reduce emissions for our miners in the underground mining environment, I have been a big supporter of Hy-Drive and its hydrogen technology,” said Robert Lipic, President and CEO of MTI. “This agreement makes a lot of sense. It enables each of us to do what we do best to meet the needs of the heavy equipment market; MTI knows how to manufacture; leaving blutip to focus on delivering the next break-through in emissions reduction solutions.”
Not included in the license is blutip Power’s proprietary controller software, which will be supplied directly to MTI by blutip Power, for each application of the HGS product. blutip Power retains all rights and ownership over all of its intellectual property, manufacturing schematics and product specifications of the Hy-Drive HGS in its entirety. Under a separate agreement, MTI will also act as a distributor for the blutip Power3 Savings Share Program, on a non-exclusive basis, for the diesel power generation market. All future development work between the two companies will be performed on an individual basis with separate terms and conditions.