Orbital Gas Systems ("Orbital" or the "Company"), a wholly-owned Energy subsidiary of CUI Global, Inc. (NASDAQ: CUI), announced it has received the third of three purchase orders from a major European industrial company for the production of BioMethane-to-grid terminals. The contract, awarded in May 2018 and valued at approximately $1.7 million, calls for the production of three BioMethane-to-grid terminals that will each include the Company's GasPT® analyzer. The contract was secured as a direct result of the May 2018 passage of the U.K. Government's Domestic and Non-Domestic Renewable Heat Incentive (“RHI”) Scheme to encourage uptake of renewable heat and contribute towards the Government's 2020 renewable energy target. Following the passage of that RHI scheme the U.K. has seen a dramatic increase in the number of planned BioMethane-to-grid facilities. The Company currently reports having 27 active, outstanding bids for such projects across the U.K.
Orbital U.K. President Paul D. White stated, “Our ability to offer the unique GasPT Technology and a turnkey solution that engineers our energy products into our integration solutions is a substantial competitive advantage in the marketplace, and one that enables us to deliver significant value for the customer and the growing market for BioMethane.”
The GasPT's recent certification from Ofgem was followed closely by approval from the U.K. Environmental Protection Agency under the European Union Emissions Trading System (“EU ETS”), also known as the European Union Emissions Trading Scheme, the first large greenhouse gas emissions trading scheme in the world. EU ETS certification means that the GasPT device is now certified for fiscal monitoring throughout the U.K. and Western Europe.
CUI Global President & CEO William Clough said, “This most recent award and additional BioMethane projects anticipated as a result of the U.K.'s RHI incentives underscores the changing regulatory and CAPEX environments in the U.K. that serves as a tailwind for our Energy business and a roadmap for future demand across Western Europe. With the significant number of bids we have outstanding for proposed BioMethane-to-grid projects in the U.K., the recent certifications of our GasPT by Ofgem and the EU ETS and Orbital's world-class engineering capabilities, we are on the path to greater Energy revenues.”