Carbon Energy signs technology licensing deal for RI power project

By Romel S. Gurky

ASX-listed Carbon Energy Limited announced Monday it has entered into a Term Sheet agreement with Ascot Energy Limited to license the company?s keyseam technology for a proposed 30MW power generation project in Indonesia.

Carbon Energy said in a statement that subject to the parties entering into legally binding licensing and servicing agreements, the company will receive revenue and royalties as set out in the Term Sheet as follows.

Ascot Energy to pay a license fee for each project of US$10 million in two tranches: $4 million when funding is secured for the project ; and $6 million on performance criteria being met in accordance with the license and services agreements; a royalty payment of production of $0.30 per MMBTU of syngas; and pre-project services fees.

The project timeline estimates up to 18 months to secure permits and a further 18 months from then to achieve ignition of the first panel, the company said.

Editing by Reiner Simanjuntak