Cyclone Power Technologies Inc. licensee Great Wall Alternative Power Systems Ltd. (GWAPS) has completed the first phase of its License Agreement involving the establishment of secure intellectual property protocols in China for Cyclone’s technology. (Earlier post.)

The parties now enter the prototyping phase of this agreement in an effort to advance the production of Cyclone’s heat-regenerative external combustion engines for the China market.

A major aspect of Cyclone’s agreement with GWAPS entails structuring strict and well defined procedures and protocols for protecting Cyclone’s patents in China. This involves creating secure computer network systems, implementing confidentiality agreements, educating personnel, establishing government liaisons, and retaining legal professionals to monitor and, if necessary, prosecute patent infringement cases in China. As part of this process, Cyclone has retained legal counsel of its own in China to audit the IP protocols that GWAPS establishes.

GWAPS will now proceed to develop in China a production prototype of Cyclone’s biomass-to-power generator system—a portable CHP power plant capable of producing 10 kW or more of electricity from the combustion of dry vegetative biomass, as well as delivering space or water heating to nearby homes. The parties will also formulate plans in the coming months for the prototyping of Cyclone’s Mark V engine for electric power generation from biofuel combustion.

The Chinese government has set an installed capacity target of 30GW of biomass-generated power by 2020, with expected investment approaching US$30 billion. If Cyclone and GWAPS can deliver the first reliable, cost-effective distributed biomass power solution as part of this rollout, the market potential will be enormous.

—Robert Devine, Managing Director of GWAPS