Pompano Beach, FL, August 4, 2009. Cyclone Power Technologies  announced today that it has signed a License Agreement with Phoenix Power Group LLC to provide engines for waste oil fueled power generators. The external combustion engine technology will burn a large variety of fuels not only fossil based. There is a CO2 savings [...]]]>

Cyclone Tech

Pompano Beach, FL, August 4, 2009. Cyclone Power Technologies  announced today that it has signed a License Agreement with Phoenix Power Group LLC to provide engines for waste oil fueled power generators. The external combustion engine technology will burn a large variety of fuels not only fossil based. There is a CO2 savings of course when the fuel is a biomass or originated from biomass. Personally I think it would be better to capture and store the waste oil than to release it’s additional CO2 into the atmosphere. I think that this is a green technology being used in a nongreen manner. Here are the details of the agreement , you can make up your own mind.

The license provides Phoenix Power with exclusive North American and Australian rights to develop and sell power generator systems utilizing Cyclone’s award-winning external combustion engines, which will run on waste oil fuelssuch as used motor oil from cars, trucks and buses. Phoenix Poweris an affiliate of Atlantic Systems Group of Harrisonburg, VA, which is in the business of designing and building automotive oil change and service facilities throughout the United States, along with the manufacturing of steel tanks for the lube industry.

Phoenix Power president, Thomas V. Thillen commented on the deal,

From our current and future customers, we see an enormous, open market for the generation of electricity using waste motor oil. This is a product that will save businesses considerable money from the disposal and transportation of waste oil products, while allowing them to produce usable, renewable power throughout the year.

Phoenix Power will pay Cyclone $400,000 in license and development fees over the following nine to 12 months — $150,000 of which was paid on license execution — and then pay on-going royalties on each Cyclone Engine produced. Phoenix Power has also agreed to pay minimum royalties over the life of the agreement in an amount exceeding $4 million in order to maintain its exclusive rights, and have received common stock purchase warrants which vest on completion of the initial engine prototypes.

Harry Schoell, Cyclone’s CEO added;

We are very excited to be working with the entire team at Phoenix Power, who have a proven track record of success in building companies and bringing products and services to market. We are confident that they have the skills, vision and financial support to get this job done right.

 Phoenix Powerhas also brought to this deal an exclusive license with Mr. Terry Bassett, who holds two U.S. patents, with international patents pending, for the total system package of generating electric power from waste oil using an external combustion engine. Additionally, Phoenix Power’s equity partners include Hansom James Capital, whose principals founded Tennessee-based AIMS Logistics Inc. in 1994, which, when sold to U.S. Bancorp in 2007, employed over 300 people internationally and processed approximately $5 billion annually in freight payables for clients that included Honeywell International, General Electric, and Nortel Networks.

 David Nelson, co-founder of Hansom James Capital, which is providing financing for the deal, had this to add,

We have been part of successful start-ups before, however, I am speaking for the entire group when I say this one is special.We have a great chance here to create something that will leave an enormously positive environmental impact on our world.