Dresser-Rand Company has entered into an agreement with Echogen Power Systems of Akron, Ohio under which Dresser-Rand will acquire a minority interest in Echogen as well as certain license and exclusive market rights to Echogen's technologies and intellectual property. Dresser-Rand's investment will be used to advance Echogen's technology development, including the design and construction of waste heat recovery systems utilizing turbo-expanders provided by Dresser-Rand.
Echogen is a technology development company focused on developing heat-to-electricity power generation systems that use supercritical working fluids to transform heat into power without creating new emissions. This technology drives value for the client through its unique combination of a lower cost per unit of electricity produced, compact footprint, higher energy recovery from the waste heat stream, and ability to generate power from a wider range of heat sources than competing technologies available in the marketplace today.
"Estimates reflect that there are over 400 gigawatts of waste heat streams that are not currently being recovered. We plan to target projects in the 1 MW to 50 MW size range. Our power recovery expanders will benefit from the application of this technology," said Bradford W. Dickson, Dresser-Rand's VP and Chief Marketing Officer.
Under the agreement, Dresser-Rand will make an initial investment of $10 million in exchange for a 20% ownership interest in Echogen. Dresser-Rand will also acquire certain broad license rights in key industrial verticals and will pay Echogen a royalty based upon future equipment sales in these markets. Commercialization is expected to begin in 2012.