Clyvia grants exclusive distribution rights for France, Spain and Portugal

Wegberg, Germany— Clyvia Technology GmbH has entered into an agreement with Energy Recycling Systems Sarl of Crespieres, France, under which the Company will grant to Energy Recycling Systems the right to act as its exclusive distributor for France, Spain and Portugal.

Under the agreement, once Clyvia has developed working prototypes of its fractional depolymerization systems, Energy Recycling Systems will have exclusive rights to distribute these products. Energy Recycling Systems will also have non-exclusive rights to sell Clyvia’s fractional depolymerization systems in Greece, Poland, Turkey and Russia. Systems purchased and distributed by Energy Recycling Systems will be sold under their own name.

Upon the Company having successfully developed working prototypes, the agreement will extend for a term of three years, and will automatically extend for an additional three years unless otherwise terminated. The hope is that Energy Recycling Systems will be able to sell at least five Clyvia fractional depolymerization systems per year. The prices for any systems to be delivered to Energy Recycling Systems under this agreement will be determined by the Company based upon the technical specifications of the systems ordered.

The fractional depolymerization systems being developed by Clyvia are designed to produce heating oil and diesel out of oil-based, plastic and organic waste materials. The technology involves a process similar to cracking crude oil. Long hydrocarbon chains are split at a temperature of 400°C which are then evaporated and precipitated in a condenser as heating oil or diesel.

In addition to offering new waste disposal solutions to public and private waste management companies, the Company believes that its technology will offer many industrial and business enterprises with a cost-effective method for processing waste materials. The Company hopes to be able to develop systems based on its technology capable of processing between 4,000 to 40,000 tons of waste per year, with the goal of being able to offer customized systems able to meet the individual needs of the operator.