TUALATIN, Ore., July 23, 2012 /PRNewswire/ -- CUI Global, Inc. (NASDAQ: CUI), a platform company dedicated to the acquisition, development, and commercialization of new, innovative products and technologies, today announced it has signed a non-exclusive agreement with Energy Measurement Consulting LLC (EMC) out of Houston, Texas for North American Sales of its Vergence™ GasPT2 natural gas metering device.
Among other provisions, the agreement places significant minimum annual order requirements on the Distributor. Under the terms of the agreement, EMC commits to selling, at a minimum, approximately 2,000 units, valued at between $40,000,000 and $50,000,000 over the five-year term. The agreement further calls for EMC to make an initial purchase of 150 units, valued at $2,500,000, for delivery in 2012.
The Vergence GasPT2, designed by GL Industrial Services (GL) and exclusively licensed worldwide to CUI Global, provides a low cost solution to measure gas quality. When connected to a natural gas system, the GasPT2 provides a fast, accurate, close to real-time measurement of physical gas properties such as thermal conductivity, speed of sound and carbon dioxide content. From these measurements the device infers an effective gas mixture comprising five components: methane, ethane, propane, nitrogen, and measured carbon dioxide and then uses ISO6976 to calculate, among other things, the gas quality characteristics of calorific value (CV), Wobbe index (WI), relative density (RD), and compression factor (Z).EMC's President and industry veteran Brian McKenzie states, "To bring a new but proven technology like the GasPT2 into the North American market is a very exciting venture for us. The natural gas industry is shaping up to be a long term driver for an efficient and inexpensive fuel source, especially in the power generation field. We feel our network of energy professionals can effectively introduce this technology to the U.S. and Canadian markets and eagerly accept the challenge."