The 10-year licencing agreement will give Alderley exclusive rights to sell and promote the Energy Recovery centrifugal line of products, including the IsoBoost and IsoGen systems for gas processing and pipeline applications in the Middle East region, including Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, Oman, Iraq and Iran.
In return, Energy Recovery will receive a one-time royalty for each IsoBoost or IsoGen unit sold.
The agreement is designed to generate more predictable and profitable revenue streams within the centrifugal product line.
This partnership with Alderley aims to accelerate a critical mass of installations for the IsoBoost and IsoGen product lines in the Gulf Cooperation Council countries (GCC) by leveraging Alderley’s strong relationships and installation expertise within the region.
“This agreement is yet another step toward realizing 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 licencor of differentiated and disruptive technology,” said Energy Recovery’s president and CEO Joel Gay.
Mark Colebrook, CEO of Alderley plc, added: “Alderley is excited to be working with Energy Recovery Inc 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.”