Loading
TARPON SPRINGS -- A new partnership to manufacture and distribute an acetylene gas substitute will not only get MagneGas Corp. into Louisiana and Texas, but would double quarterly revenue in the short-term.
The Tarpon Springs hydrogen-based fuel manufacturer signed a memorandum of understanding with Green Gas Supply LLC to create a co-venture in the two states. Green Gas will pay $550,000 for a plasma-arc gasification system, and both will share in profits from the region. The gasification system is the first the company has sold in the United States, MagneGas CEO Ermanno Santilli says in a release.
The one-time purchase would exceed MagneGas' revenue last quarter, where the company took a $2.2 million loss on $546,000 in gross sales.
The deal would allow the joint venture to produce and sell the company's primary product, MagneGas2, in the metal-cutting market, according to the release.
“Louisiana and Texas are some of the largest markets of acetylene for metal cutting in the country, with multiple oil and gas companies,” says Mark Charchio, president of Green Gas, in the release.
MagneGas trades on the Nasdaq under the symbol MNGA.
Your free article limit has been reached this month.
Subscribe now for unlimited digital access to our award-winning business news.
Join thousands of executives who rely on us for insights spanning Tampa Bay to Naples.
