Open Briefing. ESI. CEO on ENERSLUDGE License Agreement
Record of interview : corporatefile.com.au
Environmental Solutions International Limited (ESI) today announced an exclusive license agreement to market and implement the ENERSLUDGE™ technology in France with the world’s leading water management company, ONDEO-Degremont. What does ONDEO-Degremont bring to ESI and your efforts to commercialize the ENERSLUDGE™ technology?
CEO Denis Glennon Commercializing a technology in overseas markets is a challenge for any Australian company. It is a very big challenge for small-medium enterprise like ESI. A commercially sensible way forward is through exclusive licensees. That’s the approach we’ve selected.
ONDEO-Degremont is the largest water and wastewater company, not only in France but in the world. It has enormous technical and marketing resources as well as strong customer relationships across the world. Being able to access its expertise should speed the commercialization of ENERSLUDGE™. We are now in a stronger position to grow returns from the ENERSLUDGE™ technology.
corporatefile.com.au What are the specific opportunities for ENERSLUDGE™ plant developments in the near term?
CEO Denis Glennon ONDEO-Degremont and ESI have already identified a number of opportunities in France and we have submitted one joint tender in Paris. The Paris tender has allowed ONDEO-Degremont and ESI to work closely on a joint project bid and I’m pleased with the synergies found between the two companies despite the difference in size and culture.
corporatefile.com.au What industries have been identified in France as potential users of the ENERSLUDGE™ technology?
CEO Denis Glennon Our expertise in sewage sludge places us in a strong position to develop projects with municipal authorities. That will be our initial focus in France. We will of course not confine our efforts to sewage sludge opportunities only.
corporatefile.com.au Can you explain the different revenue streams that could flow to ESI from the ONDEO-Degremont license agreement and the events that need to occur to trigger revenue receipt by ESI?
CEO Denis Glennon The specific terms of the license agreement are confidential. Generally, the revenue streams include the up-front license fee, and on future plants constructed by ONDEO-Degremont, technology fees and royalties. The events that trigger revenue receipt are the execution of the license agreement and the award of contracts for ENERSLUDGE™ plants.
corporatefile.com.au Can you reveal the up-front payment by ONDEO-Degremont to ESI for the exclusive license agreement?
CEO Denis Glennon No, the specific terms of the license agreement are confidential.
corporatefile.com.au What aspects of ENERSLUDGE™ plants will most affect the size of future revenue flows to ESI? For instance, will future ESI revenue under the ONDEO-Degremont license agreement be most sensitive to plant size?
CEO Denis Glennon The two factors that will affect the quantum of revenue are the extent of the “ENERSLUDGE™ technology package,” that is, the design, equipment, commissioning, and operational services ESI delivers and the nameplate capacity or design throughput of each plant.
corporatefile.com.au Thank you Denis.
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Signs Enersludge License Agreement ENVIRONMENTAL SOLUTIONS INTERNATIONAL LI 2002-07-09 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++ Environmental Solutions International Ltd (ESI) is pleased to announce that it has signed an exclusive license agreement for its Oil-from-Sludge ENERSLUDGE(TM) technology with ONDEO-Degremont, the world's leading water management company. ONDEO-Degremont will have exclusive rights to market and implement ENERSLUDGE(TM) projects in France and elsewhere, on a project-by-project basis.
Based on the experience of over 10,000 plants built around the world, ONDEO-Degremont is the water treatment plant specialist within ONDEO. With a workforce of 3,000 and a turnover of EUR 868 million in 2001, ONDEO-Degremont designs and builds water treatment plants mainly using its own processes and technologies to offer customers guaranteed performance and results. Those installations are designed for drinking water, seawater and brackish water, wastewater and sludge treatments.
Mastering all aspects of water treatment processes and armed with proven solutions as well as technical expertise ranging from design through construction and plant operation, ONDEO-Degremont is a full-line builder and provider of water treatment solutions.
In general terms ESI will receive a license fee and on future plants constructed by ONDEO-Degremont, technology fees and royalties. The two companies are currently working closely on a number of ENERSLUDGE(TM) opportunities in the French market now that the license agreement is in place.
ESI Managing Director, Denis Glennon AO said: "this is a resounding vote of confidence for not only the ENERSLUDGE(TM) technology, but also ESI's technical know-how and expertise. The agreement is the culmination of over 12 months of discussions between the two companies during which a comprehensive technical and commercial due diligence and visits to the Australian ENERSLUDGE(TM) plant were undertaken by ONDEO-Degremont. The European market is at the forefront of the demand for new solutions to the growing global problem of sewage sludge disposal. Now, the biggest player in this market has chosen ENERSLUDGE(TM) as a sustainable and cost effective solution".
"The agreement is an important step forward for ESI, as it will give ENERSLUDGE(TM) a significant presence in the important French market. There are also many spin-off opportunities that a close working relationship with ONDEO-Degremont can have for ESI's expertise".
Mr Glennon said that finding business partners in Europe and North America for the marketing of ENERSLUDGE(TM) is a major strategic objective for ESI.
