MINNEAPOLIS, April 10, 2013 /PRNewswire/ -- ClearSign Combustion Corporation (NASDAQ: CLIR), an emerging leader in combustion and emissions control technology for industrial, commercial and utility markets and Grandeg, an 20-year-old European market leader in commercial wood pellet boiler systems, today announced their intention to enter into a development agreement for the integration of ClearSign's proprietary ECC™ technology into Grandeg's line of commercial wood pellet boilers. The companies announced at the International Biomass Conference and Expo in Minneapolis, MN, that they intend to collaborate to develop and bring to market, combustion and emissions control solutions that will be suitable for both retrofit into existing Grandeg biomass boilers, as well as for integration into new product designs. Grandeg has indicated its intent to provide up to $500,000 in funding to support a phased initial project that is expected to begin in the current quarter with the goal of releasing a first commercial solution to the market during 2014. The companies also intend to explore the possibility of further extending their collaboration as the current program progresses. "For 20 years Grandeg has been committed to staying on the forefront of technological innovation, building products that meet the highest standards of both quality and performance," said Andris Lubins, President of Grandeg. "ClearSign's ECC technology represents an opportunity for Grandeg to add unique and compelling new features to biomass boilers that can deliver valuable benefits to our customers and enhance our market position. We believe that by affording elegant and powerful solutions to the management of multiple types of emissions while improving overall energy efficiency, ClearSign's technology may help us to redefine the state of the art for solid fuel combustion. Further, we believe that it may be possible to introduce a next generation of industry-leading biomass boilers that are not only much cleaner, but also more energy efficient, more compact, more cost-effective and more reliable." ClearSign CEO Rick Rutkowski said, "We are gratified to partner with a company like Grandeg that has such a strong reputation for innovation and excellence in product design. Grandeg's products are known throughout Europe as among the best and most reliable pellet boilers available in the market. Our companies have developed a shared vision of how ClearSign's technology can be applied to the design of both retrofit solutions and new systems to extend the environmental performance of pellet boilers and other solid fuel combustion systems into new and exciting territory while also improving energy efficiency." The market for wood pellet combustion systems is large and growing. Currently, over two million stoves and inserts are sold annually in the EU in 27 countries. In the United States, more than 600,000 homes use wood pellet heating systems. Additionally, demand in Europe for residential systems grew at an annualized rate of over 25%. Between 2007 and 2010, the global wood pellet market experienced a dramatic increase and this trend is continuing with global production increasing from almost 8 million tons per year to over 14 million tons in 2010. By 2020, global production is projected to reach between 35 and 50 million tons in the EU alone. ClearSign recently announced that it had constructed and fired a new test furnace, capable of firing at a rate of over 1.2 million Btu/h per square foot, and dedicated to development activities related to solid fuel combustion. This continuous-feed furnace expands the company's development and testing capabilities, enabling it to test fuels similar to those used in Grandeg's systems and at a similar scale to commercial units.