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CUI Global's UK energy subsidiary wins third contract for biomethane-to-grid units

Last updated: 22:33 30 May 2018 AEST, First published: 22:12 30 May 2018 AEST

CUI Global
The contract is worth about US$1.8mln

Orbital Gas Systems, the UK energy subsidiary of CUI Global Inc. (NASDAQ:CUI), announced today that it has been granted a third contract worth about US$1.8mln for three biomethane-to-grid units by a major European industrial company.

The deal, which also includes Orbital’s GasPT analyzer, follows the recent passage of a favorable UK government initiative under which tariff rates for biomethane generation have been increased.

Last week, the UK introduced its program to encourage the uptake of renewable heat called the Domestic and Non-Domestic Renewable Heat Incentive (RHI) scheme. This government scheme makes biomethane generation a more attractive proposition as it encourages energy efficiency as a way to meet the UK's 2020 renewable energy target.

“The UK’s new RHI incents biomethane generation and underscores the changing regulatory and CAPEX environments in Western Europe that is serving as a tailwind for our energy business,” said William Clough, CUI Global’s president and chief executive.

READ: CUI Global’s GasPT Technology attracts industry interest after being approved by UK's energy regulator Ofgem

“With the recent certification of our GasPT by Ofgem, together with Orbital’s world-class engineering capabilities, we are on the path to greater Energy sales,” he added.

A huge amount of industry interest in biomethane has also been sparked by Orbital UK’s unique GasPT Technology receiving regulatory board approval from the UK’s energy regulator, the Office of Gas and Electricity markets (Ofgem) this month.

Orbital’s GasPT platform, which allows for better gas analysis, creates a revolutionary method to almost instantly and accurately determine the quality of natural gas.

CUI Global’s shares traded 1% higher at US$2.91 in Wednesday’s pre-market trading session.

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