ClearVue Technologies (ASX: CPV) has unveiled plans to roll-out its ground-breaking photovoltaic innovations across the Middle East and establish what it has called “feet on the ground” in one of the world’s largest markets.
The smart building-material company has signed a memorandum of understanding (MoU) with Grafsol General Trading for exclusive distribution rights in the United Arab Emirates (UAE), Kuwait, Bahrain and Qatar.
The deal also includes non-exclusive distribution rights in Saudi Arabia, a budding market that is looking to future-proof technology such as photovoltaic panels, as a source of additional energy generation in combination with aesthetics and cost efficiencies.
The deal also comes at a great time for the ASX-listed smart building-material company. ClearVue is currently generating strong market momentum after just launching its technology at two expos in the EU and the US.
At the end of last year, it launched its products in both the European and US markets with attendance at the Glasstec show in Germany, the world’s largest glass industry tradeshow, and Greenbuild in Chicago.
Welcome to the Middle East
According to ClearVue, Grafsol is an independent trading company in the business of importation and sale of green building products in the UAE, with the company wielding “extensive contacts” into the building industry and government agencies in the greater Middle East region.
Its strong local market position is designed to insert ClearVue’s products directly into markets with pent-up demand for next-generation photovoltaic solar panels.
Under the terms of MoU, ClearVue and Grafsol have agreed to collaborate to formalise a distribution licence “as soon as possible” and expect to have a formal deal with in the next 60 days.
Their initial agreement is now set to undergo a bi-lateral due diligence process but with such positive tones heard from both parties, completing the deal is considered as merely a formality.
Grafsol will become the exclusive licensee to distribute ClearVue products and technology for the next five years, with two further five-year extensions also tabled subject to agreement compliance and the two companies meeting all ongoing performance criteria.
In terms of commercials, ClearVue said that royalties will be paid in accordance with total sales measured in square-metres of glass.
Furthermore, a further licence fee could also be generated on the back of manufacturing rights if ClearVue decides to grant such rights at a later date.
In addition, ClearVue said that should the licence rights be extended to include the right to manufacture. Grafsol will be required to purchase “certain technology components” including ClearVue’s PVB interlayer containing its proprietary nano and micro particle formulation as well as the solar cell strips required to manufacture the ClearVue PV glazing system.
“This MoU represents a great opportunity for ClearVue to break into the Middle Eastern region,” said Victor Rosenberg, executive chairman of ClearVue Technologies.
“The initial licence will give ClearVue feet on the ground for sale and distribution into this very large market. Whilst we will initially sell [our] product for distribution through Grafsol, the hope from both sides is that the relationship will quickly be extended to include manufacturing rights for this territory as well,” declared Mr Rosenberg.
He added that “the aim now for Grafsol will be to secure cornerstone demonstration projects where ClearVue’s technology can best be deployed and displayed.”
Earlier this week, a similar demo has already been unveiled at Warwick Grove shopping centre in Western Australia.
ClearVue cut the red ribbon on its next-generation renewable energy technology as the first commercial demonstration of its photovoltaic solar panels in action.
Grafsol is expected to facilitate similar projects in the Middle East in the near future.
Looking forward to aesthetic efficiency
According to ClearVue, Grafsol’s longer-term vision is to use its glass to become a virtual power supplier in the region – thereby demonstrating an additional unique selling point that helps to improve both efficiency and usability of photovoltaic glass.
“Typically roof areas are comparatively small compared to the glass surfaces of the building itself. Having seen this problem first-hand ourselves over the past 15 years whilst working in the green building area, when we came across the ClearVue’s technology we realised that this problem now has a real solution,” said Riaz Lodi, chief executive officer of Grafsol.
“The additional benefit of the cooling of a building through ClearVue’s triple-glazed low-e is an added bonus. Our vision in working with ClearVue will be firstly to roll out a significant demonstration site in the Middle East region and initiate sales in the region,” said Mr Lodi.