The purpose of the commercial royalty-bearing license is to conduct a larger scale market evaluation.
The licensee has agreed to rental and royalty terms allowing them to install a pilot-scale REV machine at their own facilities, which will allow estimation of the equipment and the production of small scale commercial quantities for customer testing and pricing assessments.
EnWave chairman and Co-CEO Tim Durance said the success of the collaboration testing has compelled one of the company’s Tier 1 partners to advance into a comprehensive market evaluation.
"Signing our first Tier 1 royalty-bearing license is another testament to the potential value REV provides as a revolutionary processing technology," Durance added.
The parties can agree on final machine delivery and licensing terms, if the market evaluation phase is successful.
The commercial scale equipment is expected to be ordered in the first half of 2013 to support a full-scale commercial launch later in the year.
All other terms of the agreement are kept confidential.