Northern Power, a subsidiary of Distributed Energy Systems Corp. (Nasdaq: DESC), has signed an original equipment manufacturing (OEM) agreement with Elliott Energy Systems (Stuart, FL). The agreement gives Northern Power exclusive worldwide rights to incorporate Elliott technologies in the development of microturbine-based products for the oil and gas industry. Northern Power has also signed a distributor agreement with Elliott to sell and service its existing microturbine-based systems.
Under the terms of the OEM agreement, Northern Power and Elliott will develop microturbine-based solutions offering higher reliability, lower overall cost and a smaller system footprint than currently available alternatives. Initial sales efforts will focus on the Gulf of Mexico region, building on existing sales to Petroleos Mexicanos (PEMEX), the world’s ninth largest integrated oil company, which currently operates approximately 185 platforms in the Gulf of Mexico. Northern Power also plans to market the product to the global oil and gas industry.
“Most microturbine solutions evolved from combined heat and power (CHP) systems used in urban locations, a far different customer base from remote offshore platforms,” stated Michael Brennan, vice president of sales for Northern Power. “As oil and gas executives assess the value proposition of microturbines, they see a need for solutions that address their specific requirements.”
Dave Dewis, president of Elliott Energy Systems, concurred: “The relationship between Elliott and Northern Power will play an important role in offering solutions designed from the ground up with the specific needs of the oil and gas industry in mind,” said Dewis. “We are excited to be working as a partner with Northern Power to achieve the strategic objectives of both companies in this market, as well as other related opportunities.”
Loading...