STWA has signed a letter of intent with the Beijing Heng He Xing Ye Technology Development (Beijing TDC) to license STWA’s Applied Oil Technology (AOT) for the Chinese market.
STWA remain the worldwide exclusive holder of all intellectual property related to AOT, under the terms of the LOI.
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Beijing Heng intends to secure license STWA’s technology for the purpose of selling, distributing and commercialising AOT in the Asian nation.
Licensing fees and charges for AOT installations for TDC ‘s customers will be defined in separate agreements, which are to be negotiated.
Tests conducted by the U.S. Department of Energy proved STWA’s AOT improves oil flow through pipelines, reducing the energy required for the transport of oil through pipelines by more than 13%.
STWA Chairman and CEO Cecil Bond Kyte said the TDC realises the enormous favourable financial and environmental impacts AOT can have for China.
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By GlobalData"TDC has shared with us that they have already had discussions with government officials and one of the largest energy companies in China regarding our technology," added Kyte.
"We anticipate continued productive discussions culminating in more substantive agreements."
STWA Executive Director, Program Management / Operations Bjorn Simundson, said China is in a period of extreme growth, with thousands of kilometers of pipeline under construction and many more to come.
"The alliance with TDC is a prudent strategic benefit for both companies. Our Company holds technology that can vastly improve oil transport for China’s explosive growth, and TDC provides us the proper channels and protection necessary for rapid and secure industry and governmental acceptance and deployment," added Simundson.
STWA is a developer of energy efficiency technologies in the multibillion dollar oil pipeline and diesel engine markets. TDC is a supplier of technology and oil pumping equipment to the Chinese oil industry.
