By Steven Ralston, CFA
In a milestone event, Midwest Energy Emissions (MEEC) closed on the acquisition of patents rights and patents pending related to the Sorbent Enhancement Additive (SEA™) Technology from the Energy & Environmental Research Center (EERCF) at University of North Dakota. The purchase price was $2,500,000 and 925,000 shares of MEEC common stock, of which 628,998 shares will be issued directly to EERCF and 296,002 shares will be issued to the inventors within 30 days. The cash payment was funded by cash-on-hand, which includes a portion of the net proceeds from the private placement that closed in November 2016.
Midwest Energy Emissions now not only owns the Technology, but also no longer is required to pay monthly license maintenance fees of $$25,000 ($300,000 annually) and annual running royalties of $100 per one megawatt (MW) of electronic nameplate capacity and $100 per three MW per hour at systems utilizing licensed products and/or processes.
SEA Technology, the company’s core IP, provides an operationally-effective and cost-effective mercury emissions solution that is flexible to accommodate a broad range of configurations of coal-fired power plants fueled by varying coal types. Developed by researchers at the Energy & Environmental Research Center (EERC), SEA Technology utilizes the application of sorbent enhancement additives to promote the oxidation of elemental mercury in preparation for adsorption by uniquely formulated blends of sorbent products. Utilizing this Technology, Midwest Energy Emissions is able to offer at lower-cost option to utilities so that their coal-fired units can achieve compliance with MATS while maintaining the marketability of the fly ash by-product.
The portfolio of patents rights and patents pending is composed of 25 patents and 10 patents-pending related to mercury removal processes developed by the (EERC). The patents in the United States include:
- Sorbents and Flue Gas Additives for the Oxidation and Removal of Mercury (7,435,286)
- High-Temperature Halogen Dissociation for Mercury Control in Coal-Fired Systems (7,615,101)
- Multifunctional Abatement of Air Pollutants in Flue Gas (7,628,969)
- Sorbents for the Oxidation and Removal of Mercury (8,168,147)
- Process for Regenerating a Spent Sorbent (8,173,566)
- Mercury Control Using Moderate-Temperature Dissociation of Halogen Compounds (8,312,822)
- Process for Regenerating a Spent Sorbent (Continuation) (8,440,585)
- Sorbents for the Oxidation and Removal of Mercury (Continuation) (8,652,235)
The patent and patents pending portfolio also includes international blue sky market opportunities with SEA Technology patents in Europe, Canada and China.
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By Steven Ralston, CFA