CUI Global Inc (NASDAQ:CUI) announced Wednesday that its wholly owned energy subsidiary, Orbital Gas Systems Ltd, received an initial order for its GasPTi analyzers from one of Europe's largest industrial manufacturing companies for its biomethane-to-grid solution.
The deal includes two of Orbital’s flagship GasPT analyzer and VE technologies. The company did not disclose the value of the deal.
This initial order for two GasPTi devices follows the recent passage of a favorable UK government initiative under which tariff rates for biomethane generation have been increased.
A huge amount of industry interest in biomethane has also been sparked by Orbital GasPT technology receiving regulatory board approval from the UK’s energy regulator, the Office of Gas and Electricity Markets (Ofgem), in May.
The GasPT platform has a revolutionary method of almost instantly and accurately determining the quality of natural gas.
The company’s second flagship product is its VE technology, which employs specialized sampling probes to take smaller, more consistent and cleaner gas samples.
"We are pleased that this highly-regarded industrial company has, through its initial order, demonstrated confidence in the effectiveness of our proprietary gas technologies as a direct replacement to its legacy gas analyzer systems," said CUI Global CEO William Clough.
READ: CUI Global’s UK energy subsidiary wins major contract for its large-scale biomethane-to-grid skids
On May 22, the UK introduced its program to encourage the uptake of renewable heat called the Domestic and Non-Domestic Renewable Heat Incentive (RHI) scheme. This government scheme makes biomethane generation a more attractive proposition as it encourages energy efficiency to meet the UK's 2020 renewable energy target.
"As the energy industry moves to meet future lower-carbon energy requirements, we are uniquely positioned to offer technologies and solutions that allow for the analysis of biogas across a greater variety of caloric values and at reduced costs than legacy solutions,” said Clough.
“Building on this order, we aim to make our gas technologies the de facto standard for gas analysis in the biomethane industry," he added.
Biomethane is a renewable gas produced from biodegradable matter such as food waste, sewage or energy crops. Through the RHI scheme, the UK government has helped to create a new renewable market driving down costs through competition and the establishment of UK supply chains.
CUI shares closed 1.43% lower to US$2.75 Tuesday.
Contact Uttara Choudhury at [email protected]s.com
Follow her on Twitter: @UttaraProactive