Taronis Fuels, Inc. Provides Update on International Business Developments
September 14, 2020 at 09:00 am EDT
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Taronis Fuels, Inc. provides a corporate update on recent international business developments related to an existing contract in the Republic of Turkey. Most importantly, the existing $18.75 million, five-unit purchase order was formally approved and released by the Turkish authorities, and the order has been modified to $20 million to account for additional design specifications unique to the Turkish market. All five units are currently in production, with the first units projected for shipment in January of 2021. Beginning on August 23rd, a technical and engineering team from Taronis was deployed for over two weeks in Ankara. The team was able to successfully commission a mobile 50KW Venturi plasma arc gasification unit at its new location in Gazi, on the southwest outskirts of Ankara. The unit was officially commissioned by technical and legal representatives from the Turkish Ministry of Finance and Trade on August 30, 2020. On September 3rd, the Company jointly hosted a commissioning and ribbon-cutting ceremony at the facility in Gazi. The event was widely attended by government officials, representatives from the majority of the industrial gas companies in Turkey, as well as a select group of prospective buyers of the gasification units both within Turkey and from neighboring markets in Central Asia. The ceremony was very well received, both locally in Ankara and nationally by the Turkish business community, as the event was widely covered by both the national print and television media. In total, nine national financial and business publications in Turkey have published articles on the event. In addition, Taronis Fuels was featured on two leading Turkish national television stations immediately following the event. The Company subsequently conducted more than a dozen private demonstrations for prospective buyers of the gasification unit the week of September 7th. In particular, representatives from the majority of the leading industrial gas providers in Turkey participated in these private, technical presentations. Virtually all of these prospective buyers have expressed interest in securing access to scalable quantities of MagneGas, the Company’s patented, renewable metal cutting fuel. In several instances, these industrial gas competitors have also expressed interest in purchasing one or more gasification units. In addition, the Company has identified multiple promising channels to sell MagneGas or gasification units into other end-use applications. As examples, the Company presented to a cement producer, an operator of hydroelectric power plants, and a steel foundry. In each instance, the prospective consumers require significant quantities of acetylene for their infrastructure. In several additional instances, the client expressed interest in the comingling, or co-combustion of MagneGas with traditional fossil fuel products to increase the efficiency of the combustion process. Taronis has previously researched this application and has validated that this co-combustion process can increase heat output by up to 800%, while reducing harmful emissions by up to 50%. This co-combustion opportunity may expand to include coal-fired electric power plants across much of Turkey. The use of MagneGas through co-combustion could quickly become the primary justification for the government to procure the remaining 25 gasification units under the $165 million, 30-unit contract currently in place through a Turkish joint venture in which Taronis Fuels is a 49% minority owner.
Taronis Fuels, Inc. is a renewable fuel and power generation company. The Company manufactures and distributes industrial, medical, specialty and beverage gases and associated welding and safety supplies through its subsidiary, MagneGas Welding Supply. The Company operates over 15 retail locations and two gas fill plants. The Companyâs gas fill plants create industrial, medical, specialty and beverage gas products that are distributed to its wholesale and retail customers. The Company also supplies its customers with products ranging from bulk quantities of cryogenic gases to individual packaged gas cylinders. The Company has a diversified customer base in both the wholesale and retail markets. The Company has the expertise, assets and sources of supply necessary to service large, bulk cryogenic gas customers as well as small one-man businesses.