Energy Recovery has signed a new licensing agreement with Alderley, a global supplier of integrated modular skid systems for oil and gas applications.
Under this ten-year agreement, Alderley will receive exclusive rights to sell and promote Energy Recovery centrifugal line of products, including IsoBoost and IsoGen systems for gas processing and pipeline applications in the Middle East region. In return, the firm will receive one-time royalty for each unit sold.
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The agreement allows Alderley to sell Energy Recovery’s products in Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, Oman, Iraq and Iran.
Energy Recovery has planned to solidify its presence in the Gulf Cooperation Council countries. It began to advance towards this strategy in 2015 when the firm commissioned its first energy recovery device for gas processing, an IsoGen turbogenerator, within one of Saudi Aramco's larger facilities.
Energy Recovery president and CEO Joel Gay said: “This agreement is yet another step toward realising and unlocking the value of our long-term strategy, moreover evidence of the continued evolution of Energy Recovery's business model to that of a licensor of differentiated and disruptive technology.
“In early 2015, we explicitly prioritised the GCC for the deployment of our IsoBoost and IsoGen technologies within gas processing and pipeline applications, this a function of the then pending economic malaise within the North American midstream and upstream and more importantly, the untapped energy density throughout the oil and gas infrastructure of the Middle East.
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By GlobalData“Our focused go-to-market strategy yielded success by way of the maiden installation of an Energy Recovery device within one of Saudi Aramco's larger facilities in the first quarter of 2015, followed by securing the largest purchase order in the company's history for multiple IsoBoost units approximately one year later.
“These proof points of early adoption inexorably lent to a comprehensive corporate development effort to identify and engage the next licensing partner for the company, Alderley.”
The agreement is expected to enable Energy Recovery to focus on technology and innovation while leveraging Alderley's expertise in project execution.
The partnership will enable to boost mass of installations for the IsoBoost and IsoGen product lines in the GCC.
Alderley CEO Mark Colebrook said: “Alderley is excited to be working with Energy Recovery in the selling and promotion of the company's innovative and proven centrifugal products, as well as further driving the adoption and installation of these products across the GCC.
“Our knowledge and experience within the region, as well as the oil and gas industry, will further bolster the execution and delivery of this innovative technology to an increasing number of plants and operators.”
Headquartered in the Bay Area, Energy Recovery has offices in Houston, Ireland, China and the UAE.
